Changing demographics and the cost of financial advice is leading to more “once-off” advice clients, according to Verve Group.
The firm’s director and senior wealth adviser, Matthew Carberry, told Money Management while there was still demand for advice, the cost of advice priced out some people due to the compliance load.
“There seems to be more once off project type work especially with the younger generation. Just saying “here is an issue I want solved – can you provide advice on that? I don’t want ongoing advice I just want advice around this situation. So we’re seeing more of that,” he said.
Some clients he said just wanted either like life insurance sorted or advice on super, rather than “full blown” financial planning and part of the reason came down to affordability.
“We’re still seeing plenty of traditional clients come in and do a Statement of Advice and sign up for an ongoing service because they need someone to hold their hand and guide them,” Carberry said.
“But there’s a lot of DIYers in the 20 to 30 year old bracket. They’ve got information at their fingertips and dabble in the share market. They probably just need a bit of guidance and get guided in the right direction and go off try and do it themselves.
“I think at some stage they will transition to a typical financial planning client when they have the asset base or if their situation requires it.”
Carberry said while some of the reason was to do with cost the other part of the reason was to do with the change in demographics.