The CFS Empowered Australian report sheds light on a broader issue: two-thirds of Australians seek government intervention to ease access to financial advice. Significantly, a vast majority—nine in ten—are in the dark about their ability to pay for advice via their superannuation.
The survey of 2,250 Australians reveals stark differences in awareness by gender and age. Women, for example, express a stronger sense of financial vulnerability, with one in three linking financial stress to negative mental health impacts, compared to one in five men. Moreover, 67% of women and 71% of individuals aged 40 to 49 are in favor of legislative reforms to enhance access to financial advisory services.
Kelly Power comments on these findings, underscoring the widespread support for government action to make financial advice more attainable. With the recent re-election of the Government, Power sees a prime opportunity to implement pivotal reforms, especially as the nation anticipates millions approaching retirement in the next decade. According to Power, current structures inadequately support such a demographic shift, necessitating broader access to professional financial advice.
As the Government drafts new policies on superannuation and retirement, there is a vital need for comprehensive communication, particularly to inform citizens that financial advice related to leveraging their super for retirement can have its costs deducted from their super accounts.
Specifically, as Australians approach or enter retirement, financial advisors offer critical guidance on aspects such as contribution levels, pension setup, payment strategies, and investment planning. These services, whose fees can be deducted from super accounts, are crucial for ensuring financial security and confidence during retirement.
Previous research by CFS indicates that advised Australians are over twice as likely to feel prepared for retirement and more likely to retire when they choose, in contrast to those without professional guidance. This underscores the profound impact of financial advice on retirement readiness and satisfaction.
