More than half of Australians under 40 open to financial advice

New research reveals 53% of Australian adults under 40 are open to professional help with their money, but many think they can't afford it. If you’ve been thinking about getting financial advice, here’s what you need to know.

You may have your go-to GP, dentist, mechanic, or hairdresser, but who do you see when you need help with your money? And where do you start?

Research commissioned by CFS found people younger than 40 were the most open to receiving financial advice*. However, of those surveyed, 15% said they didn’t know how to access an adviser while 35% believed they couldn’t afford it. If it’s something you’ve been thinking about, here’s what you need to know.

What does a financial adviser do?

Think of them like a personal trainer, but for your money. A financial adviser works with you to help set your goals and identify what you need to do to reach them. 

This could be on a single topic like selling shares you’ve inherited, or more holistic and ongoing advice around how to boost your super or invest in other assets, such as managed funds or property.

What can you get financial advice about?

According to research from the Australian Securities and Investments Commission (ASIC), the most common things Australians received or wanted to receive advice about included investments (such as shares and managed funds), retirement income planning, growing super, and budgeting and cash flow management^.

Also on that list were risk protection (insurance), self-managed super funds, debt management, switching or consolidating super, and estate planning.

As for you, there may be certain dreams you want to achieve, or you’ve hit a key point in your life such as the birth of a child, marriage, death or divorce. In these, and many other instances, advice on your financial situation could help.

What can you expect when you get financial advice?

An adviser will talk to you about what you want to achieve and how comfortable you are with risk (the likelihood of potentially losing money). They’ll discuss whether you have a preference for low-risk, low-return investments, or high-risk, higher-return investments, or something in between.

They’ll also get an overview of your personal situation, assets and debts, what income and expenses you have, and whether you have things like insurance policies or an estate plan in place.

Your adviser can then provide recommendations based on your personal situation and needs and will give you a product disclosure statement for any products they may recommend.

What does financial advice cost?

The exact amount will depend on whether you’re after advice on a particular issue or your broader financial situation, and whether it’ll be over several visits or on an ongoing basis.

When you first meet with an adviser, they should provide a copy of their Financial Services Guide outlining their fees and services to give you an idea of what to expect and at what cost.

For a more detailed breakdown of some of the different types of fees that may apply, check out financial advice costs on ASIC’s Moneysmart website.

The most important thing is understanding how you’ll be charged (upfront, as a one off, or on an ongoing basis) and making sure that you feel comfortable.

Is financial advice worth the money?

If research commissioned by the Financial Advice Association of Australia (FAAA)ⴕ, which surveyed more than 1,000 advised and non-advised individuals is anything to go by, then the answer is likely to be yes.

According to the group’s last Value of Advice index data, regardless of a client’s wealth or age, advice promotes and enables a better quality of life.

Some of the top benefits cited in the research included improved financial wellbeing, financial decision making and money management. 

Importantly, there were many non-financial benefits as well, with two-in-five advised Australians saying they believed advice had benefited their family life and mental health too.

How can you find an adviser?

You can use our find an adviser service to locate someone near you.

Another useful resource is ASIC’s financial advisers register. This is a directory that provides details on an adviser’s experience, qualifications, training and memberships, as well as what products they can advise on.

* CFS commissioned research - July 2023. More than 1200 participants aged 16 to 39.

^ ASIC – Financial advice: What consumers really think

ⴕ  FAAA - Value of Advice index – October 2022