CALI urges for reforms to bridge advice gap for young Australians

Limited access to affordable and professional advice on life insurance has forced young Australians to turn to ‘informal’ and typically inaccurate sources for help, according to new research from the Council of Australian Life Insurers (CALI).

Research commissioned by the association in June found that only 11 per cent of Australians polled aged 18 to 34 receive financial advice, especially on life insurance, with other sources more commonly leveraged including friends and family (41 per cent), social media (20 per cent) and online forums (34 per cent).

This comes despite 49 per cent of respondents saying they want financial advice, with 57 per cent emphasising that they want more personalised advice on life insurance tailored to their individual financial and personal situation.

CALI chief executive, Christine Cupitt, said this – along with the data showing only 16 per cent want basic information – suggests the provision of targeted, affordable advice for Australians at every life stage should be a priority.

“We have a growing generation of Australians who are motivated to make smart financial decisions, but for many, professional advice is out of reach,” said CALI CEO Christine Cupitt.

“We need to be able to offer affordable, timely and personalised support. That’s what the Government’s Delivering Better Financial Outcomes reforms are all about, and it’s critical they stay on track.”

The research revealed a change in financial circumstances, witnessing a loved one face illness, or experiencing their own health challenge were the top three reasons behind wanting to look into life insurance.

“These are real-life decisions being made at real-life turning points,” Cupitt said.

“Whether it’s a health scare or witnessing a loved one go through something difficult, these moments prompt people to think about their own financial safety net.

“Instead of getting help from a qualified adviser, younger Australians are piecing together advice from friends, Google searches, and TikTok videos; sources that aren’t always accurate, tailored or in their best interests.”

According to further research commissioned by CALI back in 2024, young Australians were cited as one of the key drivers of life insurance increasing its share of financial advice business over the next five years, given the direct impacts of the intergenerational wealth transfer, larger mortgages, a falling adviser workforce, and increasing reliance on referral networks.

“The Federal Government’s introduction of a new class of adviser would be a win-win for all Australians by increasing access to advice, while providing a clear pathway for those looking to enter the advice industry,” Cupitt said.

“Younger Australians deserve support and advice to build the right safety net and have peace of mind about their future. We welcome the Government’s commitment to reform, but action is needed now to close the gap between demand and delivery of financial advice.”