Most Australians who seek professional financial advice are doing so at the 11th hour as they approach their 50s and retirement, according to a Yellow Brick Road (YBR) financial planning survey.
The national survey of 1,000 people revealed only 22 per cent of respondents said they have used a financial adviser and many of those were 55 years and over (40 per cent).
The wealth management firm’s spokesperson, Lyndsey Douglas, said people were reluctant to seek advice because the industry was out of reach for many families, and it had not provided trustworthy and affordable advice.
Reasons for not seeking advice included the belief respondents did not need one (63 per cent), cost (34 per cent), reputational worries, especially among males (15 per cent), perception that advisers were only suited for the wealthy (14 per cent), and embarrassment about their financial situation (12 per cent).
Australian Bureau of Statistics data showed that those over 45 who believed they would not retire before 70 had risen significantly from eight to 23 per cent in a decade.
Two-thirds of retirees were relying on government welfare as their main source of income, and while half were independently funded, they risked outliving their savings.
Moreover, women comprised of 70 per cent of pensioners and were at higher risk of outliving their savings.
Females were more likely to see a planner when they wanted to invest in the share market (29 per cent compared to 14 per cent of males), while marriage and divorce would trigger more females to see a planner than males (4.9 per cent compared to 2.7 per cent).
Nearly 10 per cent of females were not aware of what planners did, compared to 5.9 per cent of males.
