In their 2024 Advisable Australian Trends Report, Netwealth has identified five ways in which financial advice helps clients lead better, more fulfilled lives. The information comes from responses collected from advised and unadvised Australians, where distinct differences in financial outcomes were clear.
Advisers help their clients with a broad range of wealth related issues.
The top 10 issues financial advisers help their clients with are:
- Ensure there is enough money during my retirement (52% of advised clients say their adviser helps them achieve this)
- Build/diversify my investment portfolio (43%)
- Ensure my wealth is invested/managed wisely (42%)
- Minimise risk in my investment portfolio (37%)
- Estate planning/ transfer of wealth planning to the next generation (31%)
- Gain greater confidence in making investment decisions (28%)
- Gain greater confidence in making financial decisions (27%)
- Tax minimisation strategies (27%)
- Manage superannuation-related issues (excluding SMSF) (24%)
- Manage accounting and/or tax issues (24%)
The financial benefits from receiving advice are clear.
- Advised Australians are significantly more likely to feel very or reasonably prepared for retirement (76%) than those without advice (45%).
- They are more likely to have savings, with a quarter of Australians not receiving advice (23%) reporting they have less than a month’s expenses saved (compared to only 10% of advised Australians).
- Advised Australians are significantly more likely to say they feel confident in achieving their financial goals (71% compared to 55% unadvised).
- Advised Australians are more likely to say ‘I feel confident in making decisions in my investing activities’ (60% compared to 48% unadvised).
The benefits of financial advice positively impact wellbeing and other aspects of life.
Aside from financial benefits, Australians who receive advice say that it has helped them in many other aspects of their life. Advised Australians are significantly less likely (17%) to have daily money worries than those not advised (25%).
As a result, a sizeable proportion of advice clients say receiving advice has benefited both their mental health (48%) and their family life (45%), whilst around a quarter believe financial advice has benefited their physical health (22%), social life (23%) and work satisfaction (23%).
Trust breeds trust and extends beyond financial advisers to other financial professionals.
Advised Australians are more likely to use other advisers such as accountants and lawyers, demonstrating they value the contribution that advice can make to their lives.
For example, 63% of advised Australians use an accountant compared to 27% by those not advised. This trend to be more open to other forms of advice is evident across business advisers, stockbrokers, lawyers, mortgage brokers and private bankers.
Financial advisers help Australians with a wide range of financial issues during their lifetime, from budgeting to estate planning and everything in between. They also help Australians to have a more positive outlook, to feel more prepared and secure and to consider reaching out to other wealth professionals if they have a need.
If you’re ready to set your path for success and start your advice journey, reach out to us today.
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