Demand for advice ramps up amongst older Australians
Greater numbers of Australian seniors are turning to financial advice, with financial advisers now the primary source of financial information for older Australians, according to a recent survey.
A survey undertaken by National Seniors Australia and commissioned by Challenger indicates that six out of 10 seniors now seek professional financial advice, which is significantly higher than the one in four superannuation members overall who receive advice.
The survey shows that the most common sources of financial information about retirement are financial advisers at 59 per cent, super funds at 42 per cent, and Centrelink and government offices at 40 per cent.
Only 19 per cent of older Australians turn to banks, according to the results, and contrary to popular belief, family and friends are not highly rated as a source of financial information, scoring only 14 per cent.
Chairman of retirement income at Challenger, Jeremy Cooper said older Australians are becoming savvy about the challenges they face in making savings last throughout a long retirement.
“So, it is not surprising that more are engaging financial advisers to help them,” said Mr Cooper.
National Seniors Australia research director Professor John McCallum said managing finances in retirement can be particularly difficult when it comes to paying for aged care for a spouse or partner while the other person wants to remain living in the family home.
“So, it makes sense for people to seek reliable, professional financial advice when they are making what can be life-changing decisions,” said Mr McCallum.