The financial advice industry is in the process of transforming into a profession. It hasn’t been a painless process.  Financial planners are leaving the advice industry in droves.   Since December 2018, the number of advisers registered with ASIC has almost halved, falling from 28,000 to fewer than 16,000 in less than four years.

Institutions have bailed

It’s not only financial advisers who are leaving the advice industry as it professionalises.  The institutions have lost interest in the sector. 

Some, like the major banks, have been decisive, and have actively sold or unwound their advice businesses.   Others, like some big super funds, are leaving their advice businesses to slowly unravel, having lost their commitment to the sector. 

According to Adviser Ratings, that leaves 100,000 “previously advised clients” without an adviser. 

Something’s got to give

While the supply of advisers is waning, demand has never been higher.  The baby boomers have settled into retirement and need advice to make sure the money will last. 

In the next 10 years we are going to see a record amount of wealth transfer between the generations. The older generation will need advice on transferring the money in an orderly fashion, and the receiving generation will need advice on what to do with it.

And with the super guarantee system maturing in the next five years, for the first time we will see every day Australians retiring having received contributions for their entire careers. 

Advice gap is problematic

It’s important that Australians can access advice when they need it.  Professional financial advice has real, tangible financial and non-financial benefits. Research studies show that advised clients are wealthier, spend more, save more, allocate their assets more efficiently, and take less risk than the unadvised.

People with an active relationship with a financial adviser also experience less financial stress, feel more financially capable, have more resilience when things go off track, have more confidence to spend, feel more in control and can envisage a positive future.

In a nutshell, people with an active relationship with the financial planner are happier and have a better quality of life.

We are committed to the advice profession

That’s why we have anchored our careers around financial planning and built an independent practice to serve the local community. We know that when you want to discuss your finances you can’t wait.  And we know that when markets are down, you deserve to know how your investments have performed, why, and what your service providers are doing about it.

There is no place for complacency.  If you’re having trouble finding your financial planner or getting in to see them, give us a call. We will provide the level of service you expect. It’s not a matter of ‘if’ but ‘when’.

This article is general and does not consider your personal circumstances so it may not be appropriate to you.  If you would like advice specific to you, please give us a call.