The Financial Planning Association has revealed that only two out of five Australians seek qualified financial advice.
After recently hosting their financial planning week, the FPA has expressed their concern that 61 per cent of those surveyed indicating that they don’t receive financial advice, and only 16 per cent would consider seeking it within the next 12 months. The results were based on more than 90 questions submitted to the FPA experts and over 10,000 visits to their Ask an Expert page.
Mark Rantall, CEO of FPA has said of the results that they, “indicated that few Australians currently seek financial advice and, more worryingly, that they have no intention of seeking it in the future and those who are most in need of advice, people in lower income households approaching retirement, do not receive it.”
Rantall has concerns that the apathy towards financial advice will place a great strain on the entire economy and the pension system. The research indicated that one of the reasons for the low figure was that Australians don’t understand the benefits that quality financial advice can make to their lives. The survey found that only 34 per cent of Australians say they know where to find a financial planner whom they can trust. Rantall has stressed the need for further education and commented that, “clearly not enough Australians understand what a financial planner can do for them, and what they should look for when seeking advice.”
To address the situation, The FPA is planning on holding an FPA community forum in October aimed at demystifying financial advice, outlining exactly what financial planners do and educating Australians on how to find a qualified professional.