Young adults want advice and aren’t getting it: Investment Trends

About 60 per cent of younger Australians, aged between 18 to 29, want advice and are not receiving it, according to Investment Trends.

The survey, published in their Financial Advice Report was based on the views of 10,367 Australians and it found that older age groups had usually seen a financial adviser, while 59 per cent of those aged between 18 to 29 had "unmet advice needs", Investment Trends senior analyst, King Loong Choi, said.

The data showed that other age groups thought they were missing out too, with 56 per cent of 30 to 44 year olds saying they had unmet financial advice needs, 47 per cent of those aged 45 to 54 had unmet needs, and 42 per cent of 55 to 65 year olds wanted advice too.

Choi said older age groups had typically used the services of a financial adviser, while only nine per cent of those aged 18-29 (the group that wanted advice the most) had actually never used a planner.

The senior analyst said, 12 per cent of 30 to 44 category had seen a planner, 17 per cent of 45-54 year olds had used one, while 22 per cent of 55 to 65 year olds had seen a planner.

The survey also said a "barrier to seeking advice" was cost, and that younger Australians were more open to receiving it online, "using a digital solution (which) may help advice providers engage (younger) Australians adults in financial advice".

When it comes to what advice different demographics want, that "tends to differ quite a fair bit as well" and it portrayed some unmet needs, Choi said.

Younger Australians said they would like to receive advice on investment-related topics, buying an investment property and cash flow management, he said.

Pre-retirees predominately said they would like to receive advice on retirement planning and transition to retirement (TTR) strategies, the senior analyst said,

Meanwhile, retirees said they had an unmet need on aged care and estate planning advice, said Choi.

And finally, when it comes to whom each age group would "turn to for their unmet advice needs, roughly two in five", said they would turn to a financial planner.