Demand for financial advice surges

The 2017 Investment Trends Financial Advice Report, compiled off the back of a survey of almost 10,000 Australian consumers, has found strong demand for advice services.

Three million Australians intend to see a financial adviser within the next two years, the report concludes, up from 2.6 million in 2016 and more than double the figure identified in 2013.

In addition, the report confirmed a large contingent of consumers who are warm to the idea of financial advice but do not currently see an adviser.

“A growing number of individuals with unmet advice needs is fuelling growth in demand for financial advice,” said Investment Trends senior analyst King Loong Choi, commenting on the findings.

“Right now, half of Australian adults say there are areas where they would like to be receiving financial advice but currently aren’t, and this proportion has been on the rise since 2014.”

Advisers should be focusing their efforts on retirement planning and budgeting services, the analyst said, indicating these are the growth areas of demand from prospective clients.

At the same time, the report found that the number of active clients is in decline, down 25 per cent from the figure in 2007.

“Client retention remains a key issue, with planners typically losing three clients for every two they gain,” Mr Choi said.

However, he added that many advisers are taking positive steps to counter the decline, with high levels of client satisfaction recorded.