Australian consumers are more likely to seek advice on retirement products from a financial adviser and their super fund, the Financial Services Council (FSC) reveals, rather than the federal government.
The FSC’s research, conducted by C|T Group, surveying over 2,500 Australians, reaffirmed that financial advisers continue to be the main source of advice regarding retirement income.
Over three-quarters of those surveyed (76 per cent) reported that they are likely to seek out advice on retirement products.
Out of this figure, 62 per cent will likely see it from a financial adviser. Meanwhile, 46 per cent said they would go through their superannuation fund for advice, and just 14 per cent will seek it through an adviser from the federal government.
“Most voters report that they are likely to seek advice on retirement products, and the source of this advice will be either a financial advisor or their super fund. Voters are less likely to seek advice from the federal government,” the report stated.
The research demonstrates consumers’ distrust in the government for retirement support, according to the FSC.
“There is significant risk for the government if they were to try and convince Australians that politicians know best determining which retirement products they should use,” said Blake Briggs, chief executive of the FSC.
An overwhelming 87 per cent of respondents cited they are more likely to trust themselves over the government to decide which retirement products they will use.
The research reflects a recent Treasury submission from the Financial Advice Association Australia (FAAA), which opposed government intervention in the lifetime income product market.
“We see no reason at this point, when commercial products are already available, for the government to take a material risk in underwriting a solution, when these products are only being used by a small proportion of the market.
“Far better, in our view, is to spend the limited resources on financial knowledge to enable informed decisions to be made regarding strategies and products that will provide for retirement needs,” the submission wrote.
Looking at confidence, the FSC found half of Australians believe they have the confidence to effectively manage their own income and investments in retirement, the research discovered.
Out of this half, 12 per cent are “very confident” and 38 per cent are “somewhat confident”.
Some 28 per cent of those surveyed are neither confident nor unconfident, while 13 per cent are “somewhat unconfident” and 9 per cent are “very unconfident”.
The FSC also examined specific demographics, finding that older generations are more likely to feel confident to manage their retirement and investments effectively.
The 65-plus age bracket reported the highest optimism, with 69 per cent feeling confident, followed by the 55–64 age group at 52 per cent. The youngest demographic (18–24) saw the lowest confidence at just 39 per cent.
Wow, distrust in the Government. Who would have thought that people would distrust that merry band of incompetents that throw money away like it wasn’t theirs. Oh yeah, it isn’t theirs. Haha. They are very good at destroying industries so we must vigorously resist their attempts to control markets. Consumer protection is one thing but they swing too far the other way.