Access to advice deemed urgent as cost-of-living crisis persists

Higher cost-of-living challenges are placing significant strains on Australians’ mental and financial wellbeing, while access to crucial guidance remains out of reach for most.

According to research from Colonial First State (CFS), as they go through a sustained period of higher living costs, many Australians are being forced to sacrifice long-term financial goals in order to prioritise their immediate needs.

Based on a survey of 2,250 Australians, CFS found that one in five (20 per cent) said they wanted to break the cycle of living paycheque-to-paycheque, while two in five (42 per cent) working age Australians admitted that they would be unable to cope financially for more than three months if they lost their job or were otherwise unable to work.

With the cost-of-living crisis dragging on, the research revealed that more than half of respondents were more concerned about the issue than they were a year ago.

When it comes to helping Australians manage their finances through hardship, CFS superannuation chief executive Kelly Power pointed to financial advice as an invaluable tool.

“Once again, our research shows the many benefits of receiving financial advice and the difference in sentiment between those who have a financial adviser and those who don’t. The fact is many Australians are doing it tough and are looking for help,” Power said.

Meanwhile, eight in 10 (82 per cent) Australians said they believed advice should be accessible to everyone.

Furthermore, Power noted the intrinsic link between financial and mental wellbeing, as one in five men and one in three women indicated that their mental health had been negatively impacted by their financial situation.

“At the same time, an overwhelming number of Australians are crying out for access to help, guidance, and advice. We believe these findings need to be part of the national conversation about getting the right financial guidance to those who need it most,” she said.

“Creating an environment that allows advisers to service more clients is now a matter of urgency.”

Highlighting the significant impact advice could make, the research found that those who never received financial advice were twice as likely to say their financial situation had negatively impacted their mental health than those who had access to guidance.

On top of this, CFS also suggested that those without access to advice are significantly more likely to say their financial situation has had a negative impact on their relationships, lifestyle choices, and living arrangements.

However, access to crucial advice services remains an ongoing challenge for Australians without the means to afford the price tag.