Newly-advised clients outpacing client attrition
There has been a 28% increase in the amount Australians are willing to pay for financial advice, according to Investment Trends.
The research firm’s latest annual Financial Advice report found Australians had “significantly stepped up” the price they were willing to pay.
For limited advice, there had been a 28% increase and consumers were now willing to pay $770 on average.
However, this was still below advisers’ estimates of how much the advice would cost to produce at an average of $2,070.
The advice gap was widest among young adults as they had fewer complex needs and were less willing to pay for advice. This generation – those aged 18-34 years old- were also most open to digital advice as a solution.
The report also noted the number of newly-advised clients had outpaced the level of client attrition for the first time in three years.
Investment Trends research director, Dougal Guild, said he expected this would lead to more digital advice tools and superannuation funds offering advice as a way to bridge the affordability gap.
“Two in three Australians are open to using a digital advice tool to plug advice gaps, although most would prefer to use in conjunction with some form of human interaction.
“We may also start to see super funds having a larger role to play in addressing the advice gaps with a large number of members surveyed open to seeking advice from their super fund but many unaware of services available. A sizeable portion of members are also unaware of intra-fund advice solutions available as part of their memberships, presenting an opportunity for education.”
AUTHOR
Laura Dew
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