Planners not products will help clients adapt

Financial planners can be integral to helping Australians cope with the significant changes and disruption hitting the workforce, according to the Financial Planning Association (FPA).

In a submission to the Parliamentary Select Committee on the Future of Work and Workers, the FPA emphasised the importance of workers having a financial plan.

“Many changes lie ahead for the future workforce and without thorough financial advice, Australians will struggle to achieve their financial goals,” it said. “Employment safeguards such as superannuation and insurance will have to evolve as both eligibility and portability of insurance and superannuation will need to adapt to the spasmodic nature of the gig economy.”

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The submission said the necessity for higher education attainment would also add new costs and expenses requiring better debt management, while inconsistent income from episodic work would become critical to managing in terms of cash flow and debt management.

“While financial products can adapt to the changing demands of its beneficiaries, the changing workforce necessitates a re-evaluation of individual life goals,” it said. “Whether human or monetary capital, financial planners can provide clarity on how to best approach an individual’s life goals and achieve financial freedom in a technological world, where long-term job security becomes ambiguous.”

“Whether it is managing cash flow, debt management or other long-term financial and lifestyle goals, financial planners can assist the community to ensure their financial plans remain on track or implement a strategy for getting it back on track,” the FPA submission said.

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