2.6 million Australians seek financial advice

The global pandemic has pushed more Australians to seek financial advice with numbers doubling compared to five years ago, a new report said.

At least 2.6 million Australians will seek the services of a financial planner over the next two years. The increase in demand jumped two fold compared to five years ago, according to the study by research firm Investment Trends.

Faced with the uncertainty caused by the pandemic, 44 per cent of Australians said they will seek professional advice to help them reassess their financial situation.

“Potential clients overwhelmingly prefer receiving comprehensive advice over limited advice. But when cost is factored in, preference for limited advice markedly increases,” Investment Trends senior analyst, King Loong Choi told Financial Standard.

However, about 61 per cent said they are open to upgrading to comprehensive advice eventually.

One in six Australians said they currently use intra-fund advice services offered by their superannuation fund.

Among those who do not use intra-fund advice, 37 per cent said they intended to take up the advice. The majority of members under 35 years of age, said they would like to receive intra-fund advice.

In particular, they needed advice on investments outside of super, tax strategies and budgeting.

“Advice via super funds can lead to planner referrals, with 55 per cent of members open to being transferred to a planner. Older members favour a super fund-based planner while their younger counterparts are more inclined to seek out an independent planner,” Mr Choi said.