Baby boomers shun advice, seek DIY finance
Many baby boomers would prefer to handle their own affairs rather than seek formal financial advice, according to a new superannuation survey.
A REST Industry Super survey of 1200 pre-retiree baby boomers found that only 30 per cent had sought formal financial advice regarding their retirement.
Over 30 per cent said they would prefer to handle their own affairs; however, many felt financially and mentally unprepared for retirement. Thirty-five per cent said they were totally financially unprepared to retire.
A further 20 per cent of respondents did not trust financial advisers, while another 20 per cent said advice was too expensive.
REST Industry Super chief executive Damien Hill said that although the level of advice sought aligned with other age cohorts seeking advice, it was surprising, given the obvious need for baby boomers' retirement planning. Nineteen per cent of respondents said they had not started planning their retirement at all.
"This is the group that you think would be most engaged, and yet the level of detachment that we've demonstrated in the survey means that some are still a way away from engaging in the conversation," he said.
The survey found that 50 per cent believed they had a basic understanding of retirement income needs, while 42 per cent were confident of funding a comfortable retirement. .
However Hill said there was a poor level of understanding, and many under-estimated the amount needed when compared to Association of Superannuation Funds of Australia (ASFA).
Hill said he hoped Future of Financial Advice (FOFA) reforms would build confidence in the value of advice - and with an increase in cheaper advice models and the rise of single-issue advice, more baby boomers would filter through to holistic advice if needed.
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