- 93% of Australians believe people need financial advice.
- Three-quarters believe those who need advice the most are either struggling financially or not well off.
- Three in five consumers are interested in using funds in their super to pay for advice.
Tuesday 23 January 2024 New research from Colonial First State has found that 93% of Australians believe people need financial advice and almost two in three are interested in using the funds in their super to pay for that advice.
The CFS Empowered Australian report, based on a survey of 2,247 Australians in September 2023, found an overwhelming majority of consumers believe financial advice is needed, with many agreeing that financial advice is most needed by those who are struggling financially (52%) or have an average amount of money (22%). By comparison, only 15% of Australians believe advice is most needed by the wealthy.
When asked if they would be interested in using funds already invested in their super to pay for a retirement plan, 61% of Australians said yes. The strongest interest was from younger Australians aged 25 to 29. Three in four men (76%) and a similar number of women (70%) in this age group were interested. Meanwhile, 74% of consumers who already have a financial adviser said they are interested in using their super to pay for advice.
The findings coincide with Government announcements aimed at providing greater clarity around the ability for members to pay for advice using their superannuation – including by expanding the scope of advice that can be paid for using funds from a member’s superannuation account.
Colonial First State Superannuation CEO Kelly Power said the government’s roadmap is an essential step towards giving consumers and advisers more ways to access financial advice.
“Financial advisers and the customers they support will benefit from greater clarity around how people can use their super to pay for advice,” Ms Power said.
“Many Australians still don’t know that the cost of advice can be deducted from their super account. At a time when many Australians are struggling with the cost of living yet are in need of advice, having a clear list of advice topics that can be paid for with super represents an important development.”
Recent data from Investment Trends shows the cost of financial advice has increased 25% in the past 12 months alone. The cost of a financial plan is now close to $5,000.
“There is a common misconception that financial advice is for the wealthy because it is unaffordable. Yet our research shows that advised and unadvised Australians largely agree that it is those who are struggling financially who need advice the most,” she said.
“We welcome the Government’s decision to broaden the list of advice topics that can be paid for with super.”
CFS encourages anyone open to financial advice to visit the CFS Find an adviser site and take the first step to accessing a financial adviser to help identify and achieve their financial goals.
James Mitchell, Senior Manager External Communications, Colonial First State