Young Australians not seeking advice, data shows

A survey of more than 50,000 financial product consumers has found only 7.4 per cent of Millennials (born between 1976 and 1990) with a financial product acquired it through a financial adviser, with that number dropping to 4.1 per cent for Generation Z (born between 1991 and 2005).

The research house said this may be due to superannuation being the “dominant wealth management product” used by these ages, meaning Millennials and members of Generation Z are more likely to take advice from their employers.

Those born prior to 1946 were the most likely to have obtained financial products through an adviser, with 46.5 per cent of these cohort seeking professional advice.

Almost one in three (31.7 per cent) Baby Boomers (born between 1946 and 1960) obtained their financial products from an adviser, with only 17 per cent of Generation X (born between 1961 and 1975) doing the same.

“This research shows that with only around one in six obtaining their wealth management products through a finance professional, there is a big opportunity to expand their use,” said Roy Morgan industry communications director Norman Morris.

“Given the complexity of this market and rule changes, professional advice is probably necessary for most, particularly as balances grow, but it appears that only when balances approach a few hundred thousand dollars or retirement approaches that advice is sought.

“The challenge for professional advisers and wealth management customers is how to provide advice to low value customers and how to get them more involved in a topic of little interest to them.”