In one of its most recent studies, Investment Trends said it found that 44 per cent of Australians are likely to turn to their super fund for their unmet advice needs and two-thirds don’t know what their options are at retirement age.
It stated that the government’s roadmap on advice, Delivering Better Financial Outcomes, is designed to increase the availability and affordability of advice for the majority of Australians.
“The updated standard will provide clearer legislative grounds for restricted advice where this meets the client’s objectives and needs,” it said in a statement.
Its research revealed the top three areas consumers would like to receive financial advice but currently aren’t include investment strategy (41 per cent), longevity risk (33 per cent) and growing their superannuation (30 per cent)
In contrast, the research found that Australians who engage with an adviser say they feel significantly more confident in their financial well-being, and more specifically they feel much more confident in their preparation for retirement.
A key insight in the Investment Trends research reveals that two in three Australians say they don’t know what to do or intend to seek advice when they begin to plan for their retirement, reinforcing the need for accessible and affordable financial advice.
The statement added that in response to recommendation six of the QAR, “proactive nudges” from superannuation funds which are proposed to assist at important life stages in the retirement income journey, 44 per cent of unadvised Australians are likely to turn to their super fund for their unmet advice needs.
Those in the accumulation phase and pre-retirees are the most concerned about retirement planning and more than half of retirees aged 65 and over express the need for assistance with aged care.
“As the industry continues to navigate this period of transformative change, the importance of robust guardrails and standards cannot be overstated,” Investment Trends said in its statement.
From experience, even if the 44% reach out to their industry or retail fund just to ask a simple question, they are faced with 20-60 minutes on hold before someone answers and over 50% just give up trying. A concerted effort of existing advisers, new “qualified” advisers, call centre teams, robo/AI led advice services, will be required to meet the demand. Thankfully most of the big funds now work with non-aligned advisers and hopefully a well designed approach to “staged or single issue” advice will build an advice system to meet the needs all those who need it.