Positive client perceptions of advice in Australia in line with global trends

Advised investors in Australia express strong positive feelings towards advice, enjoying a strong sense of security and, according to a recent Dimensional Fund Advisors report, this is largely in line with global trends.

In its latest Global Investor Study, Dimensional highlighted that the net promoter score for the industry is at a record level, hitting 77.7.

Alongside this, 32.2 per cent of clients surveyed stated that the greatest benefit of advice is the “sense of security/peace of mind” it provides. Increased financial literacy was also cited as a benefit of advice, with 24.8 per cent noting “knowledge of my personal financial situation” as one of the main values of getting an adviser.

Other benefits cited include helping clients progress towards their financial goals (20.2 per cent) and investment returns (12.8 per cent).

Dimensional also concluded that, while clients express high levels of satisfaction with the advice they receive, only 24 per cent say they have acted as “promoters” for their advisers, referring them to friends and family.

The study’s findings line up with the Financial Advice Association Australia’s (FAAA) Value of Advice Index, which found that 88 per cent of advised Australians felt confident approaching retirement, compared with just 62 per cent of their unadvised counterparts.

During periods of uncertainty, Australians with an adviser also enjoy a greater sense of security, with 96 per cent believing the value of their advisers increases during periods of volatility and helps them feel confident in their financial strategy.

Recent independent research conducted by Russell Investments also drew similar conclusions, with its 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.

Explaining the benefits of advice, FAAA chief executive Sarah Abood said: “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.

“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.”

Domestically, FAAA research has shown that advised Australians have enjoyed relative stability despite a volatile year.

“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,” 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.”