Early financial literacy should be government focus, says IOOF

Developing good financial habits and financial literacy in younger clients should be a priority for government as well as for advisers, according to IOOF.

IOOF group general manager for wealth management, Renato Mota, said achieving this goal will have significant social and financial benefits in the years to come.

“Against a backdrop of record-low interest rates and wages growth, one challenge for advisers will be attracting younger clients to seek advice,” he said.

“Starting early is a significant step to reaching clients’ financial and lifestyle goals in retirement.”

Further, Mr Mota said there are a variety of ways a holistic approach can be taken to financial advice in contributing to the financial well-being of clients.

“Most valuable for clients will be a holistic approach that empowers clients with the skills to manage their lifetime earning capacity – 40 years for most of us – to last another 20 years after retirement,” Mr Mota said.

“This includes budgeting and prioritising expenditure, managing debt, insurance and, more broadly, measuring their progress towards their financial goals.

“Some of this advice may be complex, such as tax or investment strategies.

“Other advice may focus on financial products, including the emergence of comprehensive income products for retirement that are designed to meet retirees’ financial needs later in retirement.”

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