Financial planners are on the frontlines of a national crisis

Australia’s healthcare system is quickly being overrun by the rising rate of COVID-19 infections. Doctors, nurses and other healthcare professionals should be commended for their services to the community as the days become increasingly uncertain and the government’s response to the pandemic intensifies.

I’m no expert when it comes to healthcare, but I believe I’m correct in saying that one of the biggest issues Australia could face is a shortage of hospital beds in intensive care units (ICUs).

A shortage of financial planners is also hitting our citizens as the growing health crisis triggers a financial one.

Only 20 per cent of Australians use a financial planner. Those people will arguably be in a more fortunate position than those who have been unable to afford advice or have struggled to see the value in it.

Make no mistake, the role that financial planners play in the community has been a point of debate and contention for many years. But in times like these it becomes crystal clear, and essentially boils down to one word: help.

Help is the name of the game when it comes to professional financial planning. A financial planner’s role is to help you navigate your financial circumstances and secure not only your retirement, but your cash flow needs through your working life, through periods of unemployment and major life events.

The COVID-19 pandemic is a major life event for all Australians. Whether you are directly impacted by the virus or know someone who is, the financial impact of the evolving situation will touch all of us.

For many working Australians under the age of 50, this will be the first time they have experienced a recession in their working lives. We have been economically blessed as a nation for close to 30 years. But our Prime Minister and other state leaders have made clear that we are entering an economic crisis, the length and depth of which is, like many things these days, still uncertain.

The power of helping others

Australians who work with a financial planner are empowered to make confident financial decisions specific to their individual circumstances. There is no one-size-fits all approach when it comes to your personal finances.

While the government is rolling out a major stimulus package for the economy, it is important that each Australian accepts that their own situation is unique.

A financial planner helps you understand your financial situation, improves your financial knowledge, gives you options, helps you access the government benefits you’re entitled to and gives you guidance throughout your life. The long-term goal may be growing wealth, but in the short-term it is about helping you feel in control about your financial situation and giving you peace of mind and greater confidence.

It is in the current environment that Australia’s financial planning community will step up and be of service to those who require, possibly now more than at any other stage in their lives, the guidance of a trusted financial professional.

It is easy to rush into panic and fear in these unprecedented times. But cooler heads must prevail, and that is the duty of a financial planner: to provide advice that is in the best interest of their clients.

The role of a financial planner has been frustratingly obscure in the minds of Australians in what could be considered the lost years of regulatory overreach and political posturing. With an economic crisis now unfolding, it seems the industry is under resourced to handle the scale of financial casualties.

It is important, however, that our work at the FPA continues for our members and their clients.

We must make advice more accessible

Financial planners across the country are extremely busy providing counsel to their own clients as this financial crisis unfolds. Unfortunately, many of them will be inundated with requests from prospective clients but must now give priority to the long-term customers with whom they have a close and critical relationship.

This is a sad situation that must be resolved once we are all back on our feet and are able to reflect on these dark days from a place of optimism and with a fresh pair of eyes.

The FPA believes financial advice should be available to all Australians, not just the wealthy. Sometimes, it is only when we are forced into an uncomfortable position through powers beyond our control that the answers present themselves.

We believe the answer to a financially healthy nation lies in the democratisation of financial advice.

We can ease the burden on government services like Centrelink with the help of financial planners.

We can make advice affordable by allowing Australians to expense its cost as a tax offset.

We can show the majority of Australians why financial planning is a valuable service.

We can help those facing financial hardship.

And we will play our part in rebuilding this great nation for many years to come.

Dante De Gori, chief executive, FPA