More than 10m Australians open to seeking financial advice

The 2024 Australian Financial Advice report reveals evolving priorities across Australia’s financial advice landscape, with insights into changing client expectations and adviser engagement.

The latest report indicates there is a high demand for advice, with more than 10 million Australians open to seeking financial advice. It also revealed there is a growing need for episodic advice, with more than 50 per cent of potential advised clients indicating they prefer one-off, issue-specific advice to meet their financial needs.

The report aligns with the findings of the Quality of Advice Review (QAR) that called for more flexible and accessible advice models and follows the release of tranche two of the reforms which aim to offer these types of models moving forward.

Other findings from the research reveal that a significant majority of Australians – 16.4 million – indicate a need for help or guidance on finance-related matters.

According to the data, 10.2 million adults plan to seek a financial adviser, with the top areas where support is most needed, including ensuring money lasts throughout retirement (30 per cent), developing investment strategies (30 per cent), managing tax planning (27 per cent), and navigating home buying (25 per cent).

“It is abundantly clear that episodic financial advice, tailored to fit budgets and life circumstances, is what Australians want,” said Olivia Beringer, research director at Investment Trends.

“Customers are calling for it and organisations will be able to meet consumer needs through evolving business models. Once legislation is finalised, this will benefit all Australians.”

The data also shows a growing divide between the higher costs of comprehensive financial advice services and the affordability of episodic guidance, further supporting the QAR’s proposed adjustments to meet consumers’ needs.

The report stated that the top three areas where advised clients are willing to pay the most for human advice are inheritance and estate planning ($1,690), buying a home ($1,270), and retirement planning ($970).

“Australians are demanding advice that is both affordable and available when they need it,” Beringer said.

“Our data highlights a clear opportunity to inject greater flexibility into the industry, enabling organisations to offer targeted services that directly address consumer needs.”