More than 80% of advised clients believe the value of the advice they receive actually outweighs the costs.
That is one of the key bottom line findings of new research commissioned by IOOF and undertaken by CoreData which has significantly strengthened previous research findings around the extent to which clients value their relationship with their financial advisers.
The research, published this week, also found that more than nine out of 10 (93%) advised clients rated their financial adviser as ‘very good’ or ‘good’ with respect to the value of their services.
According to IOOF and CoreData, the research has identified for the first time the degree to which the benefits of financial advice transcend age, wealth and gender.
“The research identifies an ‘advice dividend’ for advised clients – the benefit they receive compared to unadvised individuals, in return for an ‘investment’ in financial advice – that proves advice is not just valuable to older, wealthier Australians, as often assumed, but has clear and demonstrable benefits for less wealthy and younger Australians regardless of gender,” the research report analysis said.
“In some cases, the advice dividend is greater for younger people than for older people, for less wealthy people than for wealthier people, and for females than for males,” it said.
The analysis also confirmed relatively few Australians currently receive financial advice but that the barriers to seeking advice are perceived rather than actual and are not reflected in the real-life experiences of individuals who have received advice.
According to IOOF, the research findings reveal a clear opportunity for financial advisers, supported by well-resourced and forward-thinking Australian financial services licensees, to reach more Australians and deliver valuable financial advice.