Ben Marshan of Marshan Consulting has likened the upcoming situation to a demographic "tsunami." He projects the retiree population will expand from 7.8 million to 16 million, increasing by 105 per cent. Notably, the fastest growth will be among those aged 65–74, projected to rise by 108 per cent, and those over 75, expected to surge by 164 per cent. These groups will reach critical stages where making informed financial decisions becomes crucial.
The current landscape already shows demand outpacing supply. Only 1.2 million Australians aged 55 and above currently receive financial advice, while the average adviser handles 100 to 130 clients, pushing the capacity limits of the profession. Simultaneously, the adviser workforce is aging, with half likely to retire within 15 years, according to Nathan Fradley from Fradley Advice.
Fradley suggests that bridging the staffing gap cannot be achieved merely by relying on new graduates or career changers progressing through the National Competency Assessment (NCA) role. Both Marshan and Fradley identify skilled migration as a critical solution to meet growing demand, with Marshan noting the inclusion of advisers in the government’s Skills Priority List and Core Skills Occupation List as a significant step forward.
The Financial Advice Association Australia proposes awarding five points on the skilled migration test for mandatory professional year completion, aiming to attract overseas talent. Migrant advisers bring valuable experience, including investment strategy and client engagement skills, and can serve Australia’s diverse populations better, particularly if multilingual.
Pedro Marin of Marin Wealth, who emigrated from Venezuela, underscores the gap in services available to non-English speaking Australians due to a shortage of bilingual advisers. Despite the potential advantages, the path to bringing international talent to Australia involves high costs and lengthy training times, dissuading many firms from considering overseas recruitment.
Marshan points out that nearly 47 per cent of firms are reluctant to employ international workers due to the associated expenses and administrative demands. Fradley concurs that the current educational standards in Australia pose challenges for large-scale implementation of skilled migration, suggesting the need for regulatory adjustments. There is a call to create pathways that preserve professional integrity while recognising international qualifications and experience.
