Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Retirees shun advice on misconceptions of access and cost

super/financial-planning/advice/covid-19/

22 June 2020
| By Laura Dew |
image
image image
expand image

Nearly 80% of current and prospective retirees failed to get any financial advice during the recent market crash, according to Allianz Retire Plus, despite four-in-five feeling their investments are not safe from a downturn.

The firm’s survey of over 1,000 current and prospective retirees found only one-in-five retirees felt they could easily receive access to professional financial advice and a third felt that advice was only ‘for the rich’.

This was concerning as it indicated there were still misconceptions about access to financial advice, although those who did see an adviser said they felt more confident after.

Allianz Retire Plus chief executive, Matt Rady, said: “We have to change perceptions of financial advice among retirees and increase access to affordable advice. The advice proposition is proven to be an integral part of providing individuals with confidence and certainty in retirement. Those who use an adviser told us they feel more confident and secure in their financial position.

“Some 68% of those who were advised during COVID-19 said they were sticking to their financial plan. That means advice is definitely deterring people from making sub-optimal decisions based on a fear or lack of understanding.”

Three-in-four retirees were not confident about how long their money would last in retirement and 18% felt their investments would be safe in a market downturn. Nearly half of respondents said they had been monitoring their investments during the downturn.

Those approaching retirement were most likely to be affected by the downturn with 40% of prospective retirees said they lost money during the recent downturn.

“There is an enormous sense of uncertainty and clear dissatisfaction that needs to be urgently addressed if the system is to work as intended. We have a huge opportunity to get the Australian system right and while there are pressing matters to attend to post COVID-19, this is one of them. There’s a real danger here if policy change isn’t swift and imminent,” added Rady.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 week 1 day ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 month ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month 1 week ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

1 week 4 days ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

2 weeks 4 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND