Young people distrusting advisers could cost economy: Trilogy

14 August 2018

Younger Australians are shying away from using professional financial advisers in the wake of the Royal Commission and this could cost the broader economy dearly, investment manager Trilogy has cautioned.

According to data from Rainmaker, Australians aged 18 to 42 accounted for just 17 per cent of the financial planning industry’s customer base, despite representing 46 per cent of the adult population.

Unsurprisingly, the recent evidence of misconduct unveiled by the Royal Commission into Banking, Superannuation and Financial Services could be responsible for this, Trilogy managing director, Philip Ryan, believed.

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Ryan also warned that the lack of trust in advice by younger people could prove to be a costly impact of the Commission on the broader economy.

He said that a lack of guidance and poor understanding of economic fundamentals and personal risk tolerance could lead to poor financial decisions that could compromise individuals’ financial futures. This in turn could put pressure on public funds as those Australians hit retirement age without adequate savings.

“The reluctance shown by younger generations to seek out advice comes as fallout following the damning assessments of financial advisers operating under the umbrella of some of our biggest – and most trusted – institutions. This distrust has real potential to derail our financial future,” Ryan said.

“Australians of all ages and all walks of life should be investing in their financial education and the value of engaging a reputable adviser to help plan for the future cannot be dismissed.”

Ryan acknowledged, however, that the financial advice industry needed to work to restore the public’s confidence in the profession, saying that “the anger and frustration shown by the Australian public is completely understandable”.

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"...the financial advice industry needed to work to restore the public’s confidence in the profession..." is not going to happen with the AFA's approach to protecting the incompetent.

Yet another broad slur from a virtue signalling tribal sycophant. Emotion, resentment, negativity I can play that game too Hedware. And this is in itself is a sign off the vast professionalism of the other commenters on this panel who won't play that game as every time you put up your simplistic biased venom they will in the main counter you with fact and logic. You just throw something up and "splatt" it onto the ceiling for someone else to try and take down. Forget about truth and repurcussions just decontructionism at play. As I commented yesterday the tragedy for you is you will get exactly what you seek - but look out because your comrades could "identify" you then.

"...the financial advice industry needed to work to restore the public’s confidence in the profession..." could happen if the identity pre-occupied mercenaries that undermined the publics confidence in established, educated, experienced service providers in the first place actually woke up to the fact that it is actually in the interests of the people they purport to represent if they help build with the encumbants a better solution instead of seeking to destroy everything and then take ownership over what replaces it.

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