Advice accessibility at the crux of cost of living crisis: Survey

The lack of access to quality financial advice has again been showcased in connection to financial insecurity by new research from Colonial First State (CFS), as Australians raise more concerns over persistently high costs of living.

The survey of 2,250 Australians revealed more than half are more concerned now than they were 12 months ago, with 42 per cent of working age Australians indicating they would be unable to financially support themselves for more than three months if they somehow exited the workforce.

Kelly Power, CFS’ superannuation chief executive, said the research also revealed the impact of the cost of living crisis – conflated with financial advice inaccessibility – on mental health.

“One in five men and one in three women say their mental health has been negatively impacted by their financial situation,” she said.

“At the same time, an overwhelming number of Australians are crying out for access to help, guidance, and advice.

“We believe these findings need to be part of the national conversation about getting the right financial guidance to those who need it most.

“Creating an environment that allows advisers to service more clients is now a matter of urgency.”

The survey results indicated that people who have not engaged a financial adviser are twice as likely than advised Australians to say their financial concerns and insecurity have had a negative impact on their mental health.

The research also found that Australians without a financial adviser were more likely to feel their financial situation has also had a negative impact on their lifestyle choices, relationships and living arrangements.

“Once again, our research shows the many benefits of receiving financial advice and the difference in sentiment between those who have a financial adviser and those who don’t,” Power said.

“The fact is many Australians are doing it tough and are looking for help.”

Over 80 per cent of survey respondents also said they believe financial advice should be accessible for everyone.