Cost still the major inhibitor to obtaining financial advice
Financial advice clients overwhelmingly want face to face content with their advisers and are looking for both expertise and honesty, according to new research commissioned by Findex.
The research, released today, revealed that 66.7% of respondents wanted to deal with their adviser face to face with their main objectives being to build wealth and to achieve peace of mind by dealing with someone with a higher level of financial expertise.
However, the Findex research confirms past research by concluding that there remains significant consumer resistance to receiving financial guidance with fewer than half of both millennials and Gen z open to using a financial adviser.
Instead, the research show they prefer to turn to peers for financial advice or do their own research, believing that financial advisers are too expensive.
Adding to this, the majority (29%) of all respondents were only willing to pay less than $500 yearly for a financial adviser, despite the current industry average sitting at $3,529 per annum.
“This is a wakeup call for the wealth industry to seriously rethink of how we engage with younger Australians,” according to Findex co-chief executive, Tony Roussos.
“With billions on the line, it is also a clear opportunity for financial advisers to better partner with Baby Boomer clients to not only set up the transfer of family wealth but also to work closely with them to empower their kids and grandkids with the crucial, trusted professional advice.”
“By financial advisers investing the time to build multi-generational client relationships earlier on, the wealth is hopefully secured and grown over the long-term.”
Interesting that in spite of widespread COVID induced experimentation with online meetings, most clients still prefer face to face.
So if the prefer face to face meetings…how are the IT companies faring with putting a face to that Robot?
How many of the millennials and Gen z surveyed actually had any real wealth to justify paying $3k pa ?
Dear Stats / Survey Findexers, great to use stats to tell what story you want but it’s just useless waffle.
When these millennials and Gen z have some serious wealth or are about to inherit it I’ll bet you what ever stats you want the story changes.
But hey great click bait for now :-/
By the time Gen Z in particular is old enough for the majority of them to justify an annual fee of more than $3k the annual fee will be over $6k and there will be less than 10,000 advisers to see them. The ALP and their mates in Industry Super will keep doing what the LNP did and destroy financial planning businesses because we are an easy target when things go wrong. Banks, Insurers and Super Funds will get what they want by going direct to the detriment of consumers.