Colonial First State (CFS) research has found Australians under 40 are more open to advice than their older counterparts, though cost remains a significant barrier to access.
Over half (53 per cent) of Australians aged 16 and 39 are open to advice compared to 46 per cent of those aged 40–59, and 15 per cent of those over 60.
The research, commissioned by CFS, which surveyed almost 2,000 consumers including over 1,200 aged 16 to 39, highlights how Millennial and Gen Z consumers are the most open to advice and the most willing to pay for it. However, 35 per cent admit they can’t afford it.
“Many younger Australians want advice but don’t know where to start,” said Josh Grace, group executive – customer office at Colonial First State.
“The research found that 18 per cent of under 40s don’t know the right questions to ask and 15 per cent admit they don’t know how to access a financial adviser,” he said.
“It is critical that younger Australians who clearly want advice are able to access it.”
While cost is a lingering concern, different advice models, like digital advice, could help bridge the gap until consumers are able to afford a more comprehensive, face to face advice, the firm observed.
The research found some 53 per cent of all Australians are open to digital advice. Just over a quarter (28 per cent) said they don’t know enough to say if they are open to it, while 20 per cent are not open to it.
Younger Australians appear to be more open to a digital advice solution (63 per cent), and around 25 per cent said they have used it before.
Last year, research from Monash University found young Australians are relying on avenues like family advice in deciding financial products.
A recent Findex survey found Millennials have the most to gain from ongoing financial advice.
The advisory firm’s financial modelling observed that if an individual received advice from the age of 35, their net assets could be $664,000 greater by the time they reach 65 than if they had not sought any advice.
The hypothetical example was based on a 35-year-old earning $100,000 per annum and holding a superannuation balance of $50,000.
Surveying over 1,000 Australians aged between 35 and 65 years old, Findex also found the cost of advice is the largest barrier preventing Australians from accessing advice, with 32 per cent of men and 34 per cent of women citing this as the main reason.
Not earning enough to make advice worthwhile is the second reason, followed by individuals looking after their own finances as stopping them from receiving advice.
Is CFS truly supported advice for busy young working families they would lobby the Fed Govt to eliminate adviser Annual Fee Renewal Consent forms (that do not exist in any other nation on earth). Until then, these institutions are only really interested in looking after millionaires who aren’t subject to such imposts. The reality is that without AFRC forms, if retail advisers can be made efficient again, they can provide cost-effective service support to young working families for as little as $40 a month, not $400 a month. This issue will not go away until the playing field favouring ONGOING Intra-Fund “advice” fees, that is vastly stacked against retail advisers, is levelled.