Research firm Investment Trends in Australia has released its 2022 Financial Advice Report, highlighting that affordability remains the primary barrier to consumers seeking financial advice.
Investment Trends’ Research Director, Dougal Guild, noted the unmet advice needs across many financial topics depending on demographics.
“Younger generations need support deciding where and how to invest their money, buying a home,” said Guild, “…as well as managing their cash flow while older generations are focused on retirement considerations and aged care.”
The report estimated that 12.4 million Australians have unmet advice needs and that the advice gap is widest among younger adults, with 81% of Australians aged between 18-34 indicating they have unmet advice needs, and only 18% having sought financial advice in the last 12 months.
“Two in three Australians are open to using a digital advice tool to plug advice gaps, although most would prefer to use them in conjunction with some form of human interaction,” says Guild.
The report also reveals that 80% of clients want advisers to proactively support them throughout the advice journey, and that online portals have proven to be an effective means to demonstrate progress and keep clients engaged with the advice they are receiving.
Guild says: “Advisers must sharpen their focus on key areas to shore up client loyalty and client acquisition. Understanding loyalty drivers is key to both curtail client attrition and maximise client acquisition.”
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