Embracing adviser value at the core of Financial Planning Week 2023

Speaking to ifa, Financial Advice Association Australia (FAAA) chief executive Sarah Abood said that Financial Planning Week, which runs from 2–6 October, is the perfect time to showcase the benefits that people receive from financial advice.

One of the ways the FAAA plans to demonstrate this value is through research it will release this week, which Ms Abood said highlights more than just the monetary advantages of working with a financial adviser.

“The research looks more broadly at the other benefits that people also receive from having a financial adviser. So, it goes beyond just being better off financially,” she told ifa.

“People were even talking about how to improve their family relationships and improve their mental health and all sorts of things. To be honest, we weren’t really expecting that but it’s amazing to see the impact that has when people have a great financial planner.

“Not only are they more confident about their finances and understand where things are at, they feel in control, but it has an impact across other areas of their lives as well. Just that ability to sleep at night knowing that you’re going to be OK.”

Along with the research, the FAAA also plans to put a spotlight on social media to expand the message to a broader audience, and to explain how people can find a qualified and reliable financial adviser.

“Every year we try different things because our goal is really to get the word out there that people are better off with a financial adviser, but also how to find one,” Ms Abood said.

“When you’re looking at where people go to get information and advice about their finances, interestingly, it’s actually Instagram at number one.

“But of course Facebook, TikTok famously, but also LinkedIn, so our members are going to be out there talking to people about why they should get a financial adviser, what they can expect, and how they can find a good one.

“I think it’s so important that consumers know that there’s an easy way to find out if the person that they’re dealing with is a proper financial adviser, and that’s to look them up on the MoneySmart website … you can type in your adviser’s name and see if they’re legit.”

Ms Abood added that the FAAA also recommends that people work with financial advisers who are also members of professional associations, as these advisers have committed to upholding elevated standards and a more rigorous code of ethics.

“We have a ‘find a planner’ function on our site where you can just type your postcode in and get a whole list of advisers who are near you. So, if someone doesn’t have an adviser, those are two ways that you could look up someone and be sure that that person has got the licensing, the qualifications, and the education that they need to advise you in your interests,” she said.

The emphasis on helping potential clients find a financial adviser comes after a recent Colonial First State (CFS) study identified that over half (53 per cent) of Australians aged 16 to 39 are open to financial advice.

However, the report also revealed that 15 per cent of those under the age of 40 don’t actually know how to access an adviser, while 18 per cent said they don’t know what questions to ask.

“For a lot of people, they just don’t know where to start. It all seems so complex. We really want to help there because every person is going to benefit in a different way. Everyone’s going to have a different idea of what sort of adviser they’re looking for, what sort of skills and so on,” Ms Abood said.

“Rather than getting drawn into that complexity, we just want people to know there’s an adviser out there for you. They’re going to help you be better off.”