Advised Australians enjoy stability in turbulent year: FAAA

Global and domestic volatility has made 2025 a worrisome year economically, with US President Donald Trump’s tariffs and conflict in the Middle East and Ukraine fuelling uncertainty.

According to the Financial Advice Association Australia’s (FAAA) Value of Advice Index, one group relatively shielded from this uncertainty are advised Australians.

“It’s been a tough year. Cost-of-living pressures are still very real, and while inflation has eased a bit, economic uncertainty and global events continue to weigh on household confidence,” FAAA chief executive Sarah Abood said.

“But even with all that, the indicators we track around the value of advice continue to show the positive impact of financial advice.”

The index, which compares responses from Australians who are advised and unadvised, found that 88 per cent of advised Australians felt confident they had enough money for retirement, compared with only 62 per cent of their unadvised counterparts.

The FAAA added that their data highlighted 96 per cent of advised Australians believe that having an adviser in times of market volatility has helped them remain confident in their financial strategy. A further 81 per cent stated that their adviser’s value increases during these periods.

“The difference between those who have advice and those who don’t is growing as Australians are seeing the value of financial advice, not despite uncertain markets, but because of them,” Abood said.

Recent research into the value of advice is largely in line with the FAAA’s, with Russell Investments’ similarly named Value of an Adviser report finding that almost 90 per cent of advised investors feel more confident and knowledgeable. A further 86 per cent believe their financial position has been improved after seeking financial advice.

The FAAA’s index also found that financial advice helped create a “realistic plan for a comfortable retirement” for nearly two in three of advised Australians.

Russell Investments data also supports this, revealing that 42 per cent of advised Australians are retiring before the age of 65, as opposed to only 20 per cent of those not seeking financial advice.

The FAAA also said its data helps refute the idea that only the wealthy can afford financial advice.

“We know that consumers think that you need to be rich to afford financial advice, but our research shows otherwise,” Abood said.

“Nine in 10 of those surveyed who earn $120,000 a year or less and work with an adviser feel financially secure – well above the level of unadvised consumers on the same income.”

Sixty-four per cent of advised Australians also reported that financial planning had a positive impact on their mental health.

Younger Australians working with advisers were also found to be better off than their unadvised counterparts, with “observed improvements in quality of life and financial confidence even greater than for Baby Boomers”.

“Good financial advice isn’t just about the numbers. It’s about giving people confidence, support and a sense of control, even when times are tough,” Abood said.

“It’s not simply outsourcing your financial decision making, it’s helping with financial literacy and supporting consumers to make the best financial decisions they can.”