The report from Allianz Retire+ also found that while around half of respondents believe financial advisers have valuable expertise and deliver a useful service, over 50 per cent of those aged 65 and over indicated they would not use an adviser.
The most cited reasons, according to the research, included retirees feeling financially capable on their own, not having enough funds to invest and the perceived high cost of advice.
As for those retirees that do use a financial adviser, over half cited the desire to know more about their financial position and confirmation they were doing enough for retirement.
When selecting an adviser, trust was the strongest driver of choice, followed by facilitating the best (tailored) advice, then the ability to explain things simply and then reliability, the research found.
Further, it found that a person’s gender also appeared to influence what retirees seek in an adviser, with women seeking support and care, while male respondents favoured financial benefit.
On the other hand, Allianz Retire+ found that 94 per cent of Aussies aged 65 and over who have sought expert advice are satisfied with their advice and have a healthy trusted relationship with their advisers.
In addition, 63 per cent of those who were satisfied with their advice have been with their adviser for over five years, and one in two has recommended their services, citing a good relationship as the main driver.
“The results emphasise the important role trusted adviser relationships have in helping Australians really retire,” said Allianz Retire+ chief executive Matthew Rady.
“The numbers show a fundamental difference that quality advice makes to the confidence of a retiree. We can also see that advisers should be encouraged by the results as a strong indicator of an existing and growing value proposition.”
Its ok, they have read the barefoot investor
I’ve spoken to three potential clients in the past fortnight who aren’t proceeding with advice because they think they know best. Not one of them had any idea and two stated what they were going to do and it was just stupid. I am sure they will enjoy losing their money but that is what happens when you think you know more than you do.
All you can do is sit back, the old barefoot investor will save the day.
Why should I pay an adviser to lose money when I can do a perfectly good job of that myself.
Advisers have scoped out all the value they used to add, or they were never able to deliver it in the first place.
Go back to the SMH/Age you angry old fool. They are relying on heavy patronage by people like you for their existence.
We’re not stock brokers, lol… Do you understand what it is we do?
If the over 65s perceive advice costs are high now, it’s only going to get worse. The removal of grandfathered commissions (which has been a source of very low cost advice to many older clients) and the ever expanding regulatory burden, will push advice costs even higher.
And for all the technology spruikers out there, please don’t try to say technology will solve the problem. Yes, technology can help with some issues, but the net cost savings after paying for the technology aren’t that great. The extra cost impact of regulatory burden far outweighs the small net cost savings from technology.
what did you expect? When industry funds advertise they create an impression that you don’t need advice.