2.4 million Aussies engage in financial advice to get a leg up

Millions of people are using advisers to improve their financial outcomes amid a complex tax environment and possible legislative changes.

If your car engine sounds dodgy, you see a mechanic. If you’re unwell, you see a doctor. If you’ve got a tooth ache, you see a dentist. But what do you do when you’re looking to better manage your finances?

Around 2.4 million Aussies see a financial adviser and a further 1.1 million intend to do so in the next two years. This does however, mean around 14.5 million adults remain unadvised.1

Why would I see an adviser?

Past research shows those who do, generally save an extra $1,590 a year, after advice costs, and are almost $100,000 better off at retirement.2

There might be particular goals, events or circumstances that prompt financial advice, including unexpected situations like redundancy, the death of a loved one or divorce.

You might also seek advice when you’re saving for retirement, trying to navigate aged care options, buying a property, starting a family or simply wanting to reduce or consolidate your debts.

The right advice can help you:

  • Budget and save
  • Set financial goals and achieve them
  • Understand tax implications
  • Avoid unnecessary costs
  • Protect your income and assets
  • Get government assistance you’re entitled to
  • Navigate regulatory complexity.

While many people have the perception that advice is only valuable if they have significant assets, it can be beneficial for people in a wide variety of financial circumstances.3

Why doesn’t everyone see an adviser?

Non-advised Australians recognise they need help on financial matters, yet still don’t seek help—86% have concerns about their finances and 36% say they have unmet financial advice needs.4

Reasons previously cited by Australians for why they don’t engage an adviser include:

  • There’s a perception they don’t need financial advice (56%)
  • They feel they don’t have enough money to make it worthwhile (39%)
  • They believe seeking advice will cost too much money (21%)
  • They are unsure where to find a good adviser (18%).5

How do I find an adviser and what’s involved?

AMP has a find an adviser tool, so you can locate a professional near you, or you can search via industry bodies such as the Financial Planning Association and Association of Financial Advisers.

Once you’ve found an adviser you’ll need to do some preparation so you can provide a clear picture of your situation. Also check ASIC's adviser register—a directory which provides details on an adviser’s experience, qualifications, history, the products they recommend and what licence they operate under.

Information to take to your meeting:

  • Your income and expenses
  • Your assets and debts
  • Your insurances and super
  • Your attitude to investment risk
  • Your short to long term goals
  • Whether you have a will
  • What type of advice you think you’re after – one-off or comprehensive.

After you’ve discussed these things, your adviser will provide you with a statement of advice, which includes recommendations, and a product disclosure statement for any product they’ve recommended.

As part of this process, it’s important to understand how you will be charged and you’ll also need to assess whether the advice provided is right for you. After all, it is your money.

Where can I go for further information?

Today’s financial landscape is becoming increasingly complex and consumers are being asked to make more financial decisions than ever before, which is why engaging a financial adviser could help.

1 Investment Trends 2015 Direct Client Report - survey of 10,367 Australian adults
2 Financial Services Council /KPMG Econtech research
3 ASIC Report – access to financial advice in Australia
4 Investment Trends 2015 Direct Client Report - survey of 10,367 Australian adults
5 ASIC Report – access to financial advice in Australia

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© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.