New research by Roy Morgan has revealed that the 1.96 million Australians who seek advice to buy superannuation or managed funds equates to $703 billion in wealth management products.
Roy Morgan’s Profile of Users of Financial Planners Report compiles research from over 50,000 face-to-face interviews with Australians in their homes, which includes more than 5,000 that used a financial adviser to buy super or managed funds.
The report also said that one in three Australians in this group are in the top wealth quintile, which has the largest take-up of financial advisers.
The second-largest group (22.1 per cent) was those earning more than $130,000, while Baby Boomers came in as the third biggest group (18.5 per cent).
Key above average users of financial planners/advisers
Source: Roy Morgan
Roy Morgan industry communications director Norman Morris said there were opportunities to be found in doubling down on the top wealth management demographic.
“With a great deal of activity in the financial planning market involving the major players to either exit or merge, it is important to focus on the high-value customers at this time due to the very large skew to the top quintile,” Mr Morris said.
“In other words, there is obviously a valuable opportunity to understand this segment that controls nearly two-thirds of the wealth management market value and also likely to have considerable other banking and financial needs outside of wealth management.”
ANZ, NAB and CBA have made moves to divest their respective wealth management arms.
The number of advisers that will remain post the FASEA exam followed by the education requirements will be so small that they will all be busy servicing the high end meaning there will be not enough advisers left to service the middle to lower end of Australians. No need to give incentives for Australians to seek advice such as making FP fees tax deductible then. Just build a bigger Centrelink infrastructure for the many that will need age and disability pensions! That should do it Kelly O’Dwyer.
They ain’t knocking on my door 🙂
Wonder where these people are
So … If I am reading this correctly, then only 16.67% of working Australians have sought advice? Is not the greater opportunity the 83 or so percent to get them engaged in advice? Therefore promoting the power of advice – for which there is an abundance of evidence both from a overall life satisfaction point of view (aka happiness) and from a financial well-being aspect – should be the main objective of policy makers, industry bodies and regulators, rather than attacking / dismantling the profession?