Early-stage advice can prevent wealth inequality

18 November 2021
| By Chris Dastoor |
image
image
expand image

If the advice industry can be scaled to help people at earlier life stages with less assets, the industry can potentially help reduce wealth inequality, according to Ignition advice.

The firm released an insights paper ‘Digital advice and social responsibility’ which outlined how financial advice could be used to help reduce poverty and improve wellbeing.

Financial advice could help with four of the 17 UN sustainable development goals:

  • End poverty;
  • Ensure healthy lives wellbeing;
  • Promote inclusive and sustainable growth; and
  • Reduce inequality

Craig Keary, Ignition Asia Pacific chief executive, said the need for advice had never been greater but it was still out of reach for too many people.

“If I think about the benefit of advice, if its accessible and cost effective, it absolutely can be a leveller for people early on when they may not necessarily be able to afford it in a traditional way to reduce that inequality over time,” Keary said.

“The value of advice is huge, just the ability for somebody to be able to start saving earlier, to make sure that they’re in the right fund to make sure they’ve got the right level of insurance cover; the value of advice is unquestionable.

“What has been the challenge, is with distribution disruption happening – not just here in Australia, but globally – the affordability of that meant people couldn’t access that value.

“But what we do know is that people want a piece of advice that will help them get through that life event and make sure they’re not financial disadvantaged.”

Keary said philosophically within the organisation at Ignition, they were big believers in the value of advice and how to expand it.

“And when we’re talking to big institutions they absolutely believe in the value of advice but the issue now has been how you can deliver at scale,” Keary said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago