Adviser shortage prices out vulnerable retirees
Australia’s shrinking financial adviser workforce has priced out retirees with mortgage debt and limited superannuation from obtaining the support they need during the most complex phase of their lives, chief executive at Homesafe, Dianne Shepherd says.
The warning comes as the average cost for comprehensive advice has risen to around $4,700 annually with adviser numbers falling from 30,000 in 2019 to 15,000 today.
Shepherd said the gap in the support-system was emerging at the worst possible time as the burden of decision-making in recent times has shifted almost entirely to individuals.
“We are seeing more Australians than ever reaching retirement still carrying a mortgage, with modest super balances and increasing longevity risk – yet access to affordable, high‑quality financial advice has never been harder to secure,” she said.
“The combination of rising debt, volatile markets and a shrinking adviser workforce means many retirees are being forced to make life‑changing financial decisions without the guidance they deserve.”
As per Homesafe, the challenge for retirees includes managing superannuation drawdowns and tax strategies, navigating age pension eligibility, rising interest rates increasing mortgages repayments and integrating home equity into long‑term planning.
Moreover, Shepherd says despite superannuation assets now holding above $4 trillion nationwide as a clear sign of long-term saving discipline, housing debt may still limit retirement income, particularly if mortgage payments continue.
“Retirement security is not just about how much you’ve saved. It’s about how all your financial pieces – property, debt, super and everyday living costs – fit together,” she said.
She further notes that many older Australians have most of their wealth tied up in their homes, which makes them appear financially comfortable but leaves them with limited accessible income for everyday expenses.
In an environment where advice is harder to access, Shepherd said home‑equity solutions like Homesafe can play the role in improving retirement outcomes.
“We work closely customers, and often their families and advisers, to ensure decisions are informed, transparent and aligned with long‑term needs,” she said.
“Every Australian deserves the opportunity to retire with dignity and financial security. We cannot allow a shrinking adviser workforce and rising advice costs to leave older Australians behind.”
Well said – 100% accurate.
The Otivo platform is designed to help advisers deal with hundreds of new clients that need affordable advice … but most of the advice community is too busy advising. Something has to step up in the leadership of licensing because if the planning community shirks this responsibility AI and chat gpt in an unregulated world will win.
Well our compliance and red tape costs average around $200-$250k per adviser.
Go ask the government why advice is so expensive. This is NOT including adviser levy nor CLSR.
The stupidity of CLSR is we have to protect consumers, so we charge advisers so they charge clients so the consumers pay the consumers rather than holding sludge that created the problem accountable. For example, how was the Dixon advice business “moved” to another entity and allowed to keep trading, why was this asset not seized?
Until bureaucrats are removed from advice and replaced with a professional standards board nothing will change. The ineptitude of ASIC and Treasury is mildly exceed by the Storm proprietors.