ART says super funds can make advice accessible

Australian Retirement Trust (ART) chief executive Bernard Reilly said the Quality of Advice Review (QAR) will help simplify the regulatory framework to better enable high-quality, accessible and affordable financial advice.

“We need to break down the barriers Australians face in getting financial advice, so we support the Quality of Advice Review. It’s challenging the industry to think differently about how advice can be delivered by super funds,” Mr Reilly said.

“The millions of people retiring over the next decade will need support. As one of the largest super funds in the country, we have the scale and capability to make that support more accessible, meaning more Australians will live their best retirement.

“Australian Retirement Trust is an industry leader in the financial advice space, and we want more Australians receiving affordable and accessible advice. The advice system is broken and all Australians deserve a better solution — so we welcome the Quality of Advice Review.”

The comments come on the back of ART research that found the increasing cost of living and recent economic events are causing financial stress for Australians.

Surveying over 2,000 Australians, the survey found 85 per cent are worried about the impact of recent economic events on their household budget, while almost half (48 per cent) feel financial stress at least once a week.

Despite 70 per cent of all participants believing that financial advice could improve their financial wellbeing, only 32 per cent currently access financial advice in some capacity.

ART head of advice Anne Fuchs said: "It’s good for people to be thinking about their finances — but not if it is causing stress and worry at such a high rate. That’s something that, as an industry, we should be helping to solve.

“As the survey shows, Australians know financial advice can make a difference to their wellbeing, and they want to access it. But if the vast majority face barriers, it signals that there is a problem with the system. Advice isn’t just for the wealthy, it can improve financial outcomes no matter what you earn, and everyone should have the opportunity to access it.”

Among respondents who have never sought advice, 96 per cent say there are barriers, with cost being the main one (57 per cent think advice is too expensive).

“Difficult economic times aren’t going away — we have seen seven interest rate rises in a row, with many economists forecasting more to come. Australians shouldn’t be left to manage that stress on their own and financial advice can help ease that worry,” Ms Fuchs added.

“Financial advice should be easy to get and easy to understand. As one of the largest super funds in the country, we can help make that possible, but we need the regulatory environment to enable that.”

ART isn't the first super fund to support the QAR in the last week, with Aware Super spruiking the findings of its own survey which found that advised members were better off.

This was followed by the executive general manager of advice at Australian Unity, Matt Brown, applauding QAR reviewer Michelle Levy’s overarching focus on creating an environment for providers to deliver “high quality and affordable financial advice” that ultimately “contributes to the wellbeing of more Australians”.