Australians Seek Financial Advice From Superannuation Funds, According to New Report

A new report by Colonial First State (CFS) has revealed that a significant number of Australians desire to receive financial advice from their superannuation funds, even among those who already have a financial advisor. The CFS Empowered Australian report surveyed 2,247 Australians aged over 18 between July and September 2023, including 456 respondents who currently have a financial advisor.

The findings showed that 44% of consumers who have never received personal advice expressed their wish for their super fund to provide financial advice. Surprisingly, even among those who already have a financial advisor, 60% shared the same sentiment.

The report also highlighted the growing demand for financial advice if it could be paid for using funds already invested in super. When asked if they would be interested in using their super investments to pay for a retirement plan, 61% of Australians responded positively. This interest was particularly strong among individuals aged 25 to 29, with 76% of men and 70% of women in this age group indicating their willingness.

An intriguing finding from the report was that 74% of consumers who already have a financial advisor expressed interest in using their super to pay for advice.

Interestingly, there was a higher demand for digital and general advice among advised consumers (45%) compared to unadvised individuals (36%). The report highlighted the potential role of technology in making financial advice more accessible to people.

According to CFS, both advised and unadvised Australians believed that those facing financial difficulties required advice the most. This was followed by individuals with an average amount of money. However, only 15% of respondents believed that advice was most needed by the wealthy. Kelly Power, the CEO of CFS Superannuation, stated that there was a misconception that financial advice was only for the wealthy, when in reality, those struggling financially often needed advice the most.

CFS believes that the report is an important step towards providing consumers and advisors with more options to access financial advice. Power stated that having a clear list of advice topics that can be paid for using super represents a significant development, particularly during a time when many Australians struggle with the cost of living and require advice.

In terms of financial literacy, recent analysis by City Index revealed that Australians frequently searched for information on terms such as “equity” and “GDP,” indicating a growing interest in understanding financial concepts.

In related news, Qantas Super has once again reduced its insurance premiums, offering more affordable options for its members. Meanwhile, Generational Development Group reported a 24% increase in funds under management (FUM) from the previous year, reaching nearly $3 billion as of December 2023.