The struggle for advisers to reinvent themselves

A clinical psychologist is concerned about cuts to Medicare as financial advisers he has treated have tended to need longer treatments as they struggle to transition to a new career and identity.

Max von Sabler had run his clinical practice, MVS Psychology Group, in Melbourne for eight years and said he had had treated numerous financial advisers during that time. 

The Federal Government had recently announced visits to a psychologist or allied mental health service would be cut from 20 visits to 10 from next year as it was worried 20 sessions was restricting access for new patients.

Health Minister, Mark Butler, said: “The evaluation found that all of the additional services went to existing patients and that the number of new patients who were able to get into the system and get access to psychology services actually declined by 7%”.

VIEW ALL

View all

Von Sabler said he was concerned by this as he had worked with financial advisers who had been affected by the Hayne Royal Commission and found they needed the full allocation of sessions.

“Those who were impacted hard by the Royal Commission, especially those who had done the right thing, we have had to engage with them for a long time. It has not just been 10 sessions, it has been more like 20-30 each year as their life has been turned upside down.

“Yes, we are having fewer new advisers come through since the Royal Commission, it’s more that the people who were unwell at the time are still coming to us. The psychological impact on them has been enormous.”

A big part of this was that former advisers were now having to transition their lives to a profession outside of financial services.

“Financial services [people] have been put under enormous stress and pressure and a lot of that is around trying to find alternate, meaningful work. They have been thrust in the position of needing to reinvent themselves and find new skills in a new occupation.

“In small businesses, that business is a big part of their identity and now they have to re-align that identity which is enormously stressful.”

He said financial advisers had the benefit of both technical skills but also sales and marketing skills which made them “uniquely equipped” if they were seeking a second career.

A second problem from the Medicare cuts was people may be unable to return to work which would impact business productivity and have knock-on effects on their family life. There was also the problem of underinsurance, an area financial advisers could help with.

“People are underinsured and may not have access to TPD or income protection to protect them and their family. Without insurance, people face even more mental stress about their finances. People aren’t aware of it and don’t have it.

“The clients I’ve had with TPD or income protection have been incredibly grateful for it as it has removed that financial stress from the situation.

“Advisers have a role to play in helping people with budgeting and the importance of insurance.”

If you are affected by any issues in this story, contact Lifeline on 13 11 44 or Beyond Blue on 1300 22 4636.