Advice key to retirement confidence
Australians who use a financial planner/adviser are three times more likely to feel "very well/fairly well prepared" for retirement, while significantly lower numbers believe they will rely on the Age Pension, according to a whitepaper.
The final part of MLC's three-part whitepaper, ‘Australia Today', found that only 15 per cent of Australians felt confident about their retirement nest egg, while 66 per cent of those who had not retired were "slightly or not at all prepared" for retirement.
However, those who sought professional advice were significantly more likely (35 per cent) to feel well prepared, compared to those who did not seek advice (nine per cent).
Furthermore, only 27 per cent of over 2,000 respondents who used a financial planner/adviser, and 31 per cent of those who used an accountant said they were or would rely on the Australian Government in their retirement, compared to 49 per cent of those who did not seek professional financial advice.
Wealth Advice executive general manager, Greg Miller, said Australians remained uncertain about their retirement savings despite a robust superannuation system, and highlighted the effect of political tinkering of the super system.
"If we can get policy certainty around super, advisers will be better able to help more Australians understand the value of super and saving for their retirement," he said.
The research also found 74 per cent of women felt unprepared for retirement, compared to 57 per cent of men, which corresponded with the fact that they retired with 40 per cent less super than men.
Young people aged 25 to 29 were also more likely to feel unprepared (79 per cent).
AUTHOR
Malavika Santhebennur
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
