Australia to planners: like you more, need you less

Far fewer Australians are seeking financial advice, yet paradoxically they think the standard of that advice has dramatically improved, according to a survey of 25,000 consumers.

The seventh bi-annual ACNielsen Consult ‘Wealth Management Report’ found that just 40 per cent of respondents had sought professional investment advice in the previous year, down from 60 per cent when they were asked two years’ beforehand.

ACNielsen client service associate director, Glenn Wealands, said the use of advisers had gradually trended down over the past four surveys, yet this corresponded with a rise in those who positively rated the advice they received from 34 per cent to 71 per cent.

Wealand attributed this paradox to the rise of a do-it-yourself investment industry, driven by the likes of the ASX, which had made far more information available and empowered people to control their own money, or at least demand more from their adviser.

The 25,000 respondents to the ACNielsen survey continued their habit of backing last year’s winner as their preferred asset class.

Following the outstanding performance of Australian equities in 2004, 34 per cent of respondents predicted the local share market would again do best in 2005.

Investment property was tipped to do best by 15 per cent of respondents, while 11 per cent thought their own home would generate capital growth to beat them all.