Most (90%) of advised clients are left in a better financial position after accessing financial advice and 95% thought their adviser always met or exceeded their expectation, according to a survey.
Research by IOOF, in conjunction with CoreData, also found that advised clients had improved mental health (50%), worried and stressed less (88%), and had better relationships with family and friends (41%).
Commenting, IOOF chief advice officer, Darren Whereat said: “Advice also helps them to identify, prioritise and achieve financial goals (91%) and personal goals (86%).
“The top four factors clients ranked in assessing the quality of relationship were: trusted relationship, understanding of me and my circumstances and needs, demonstrable skills, expertise and knowledge and, effective communication.”
IOOF said many of the barriers to seeking advice were perceived rather than actual and were not reflected in the real-life experiences of individuals who received advice.
The research also found that:
- Over 90% of advised clients rated their financial adviser as very good or good with respect to the value of their services;
- 84% of advised clients agree the value of advice outweighs the costs;
- 71% of clients found their adviser via a referral – highlighting the importance of relationships and word of mouth;
- 93% said they would likely recommend their financial adviser to family, friends, or colleagues;
- The research revealed the key benefits clients experienced from their advice, with it helping clients to identify, prioritise and achieve financial and personal goals, including that:
o 93% believed advice provides clarity around goals and progression towards them
o 91% agreed receiving advice helped them to achieve their financial goals
o 86% agreed advice helped them achieve personal goals
o 82% believe advice helps inspire them to work towards and reach their goals; and
- Almost half (46%) of unadvised individuals were open to the idea of seeking advice in the future, with 80% more likely to consider advice if they had a specific need identified.
Advised clients also agreed that technology played an important role in advice but did not replace the benefits of face-to-face interactions.
“This research supports what we have long suspected – that relationships will always be number one, but that there are many ways to introduce better technology behind the scenes so that advisers can spend more time in face-to-face interactions and building trusted relationships with their clients,” Whereat said.
However, 72% of participants who were unadvised said they would be more likely to seek advice in the future if they found an adviser they felt they could trust.
For those that were not seeking advice, 61% believed they did not have enough assets or wealth to need advice, 55% believed it was not the right time to seek advice, and 54% thought they could not afford advice.
“Australian financial services licensees must commit to supporting and helping advisers deliver advice to clients in an efficient way that not only makes advice practice businesses valuable and sustainable, but also helps to remove perceived barriers to seeking advice and makes advice more affordable, more accessible, and more engaging for more Australians,” Whereat said.
The research surveyed 11,615 advised clients and 1,000 unadvised individuals.