Despite all the negative publicity, financial advisers are the most trusted source for getting financial advice, and this is particularly the case for Generations Y and Z, according to new cross-generational research conducted for ING by actuarial research house, Rice Warner.
According to the research, baby boomers and Gen X are turning to advisers to help them stay on top of their finances while younger generations (Gens Y and Z) want assistance with longer-term goals such as family planning, buying a home and retirement.
But the bad news for financial planners is that not one of the generations surveyed appears willing to pay what good advice actually costs.
The research found that the average amount Australians expect to pay for an annual strategic plan delivered via face-to-face consultations is:
- Baby boomers $315
- Gen X $232
- Gen Y $316
- Gen Z $394
However, the research found that Generations Y and Z had higher fee expectations for automated online advice tools when compared to Baby Boomers and Gen X who, on average, expected to pay less than $85, while Gens Y and Z indicated a preparedness to pay more than $195.
Consistent with previous research, the ING study found most people did not believe they would be financially ready to retire, with Gens X, Y and Z thinking they will need between $1.5 million and $1.74 million each in savings to retire – more than double the Association of Superannuation Funds of Australia (ASFA) retirement standard.
Commenting on the report findings, ING head of retail banking, Melanie Evans said Gens X, Y and Z were clearly thinking cautiously about retirement and were under no illusion that you can retire whenever you want without adequate savings.