The report also uncovers that cost is a significant barrier for 36% of unadvised Australians, while others are unsure about assessing the value or accessing financial advice. Furthermore, 70% of respondents believe that advice should be priced based on complexity, suggesting a need for more personalized financial services.
Superannuation emerges as the top area of interest for advice, yet an overwhelming 92% of those who've never received advice lack awareness about using their super to cover these services. This points to a broader need for educational initiatives in the financial sector.
Xavier O’Halloran, CEO of Super Consumers Australia, has urged caution towards the report's stance, warning against assuming financial advice as a sole determinant for positive socio-economic outcomes without considering existing wealth disparities. He suggests that higher wealth can correlate with increased financial advice uptake.
Further findings indicate a strong desire for super funds to assist in finding local advisers, with one in two Australians supporting this initiative. Additionally, with rising living costs worrying three-quarters of respondents, financial well-being remains a priority.
In the political arena, incoming Minister for Financial Services Daniel Mulino is set to continue reforms initiated by his predecessor, Stephen Jones. The Delivering Better Financial Outcomes (DBFO) reforms, which aim to streamline and enhance access to financial services, are expected to resume once the new government settles.
Both political sides acknowledge the need for reform, though definitive plans remain undeclared. Meanwhile, Shadow Minister for Financial Services, Pat Conaghan, is reevaluating the Coalition's position on financial advice reforms post-election.
Kelly Power, CEO of CFS Superannuation, emphasised the urgent need for reform, highlighting the approaching retirement of millions of Australians and the inadequacy of the current framework to meet their advisory needs.
As the government settles and new policies emerge, there is an opportunity to reform the financial advice landscape, prioritising accessibility and comprehensive support for all Australians.
