Financial instability fears rife

Despite the majority of Australians fearing they aren’t financially stable enough to endure a recession, only three in 10 currently use a financial planner, according to new research from the Financial Planning Association (FPA).

The survey of 1,100 people conducted earlier this year shows 69 per cent of Australians fear losing their job if the economic situation worsens, and 91 per cent are concerned about the rising costs of groceries and petrol.

The release of the ‘FPA Financial Planning in a Volatile Economic Environment Report’ coincides with Financial Planning Week (19-25 May) and demonstrates the value of advice in that it encourages informed decision making.

It shows that people using financial planners are 77 per cent more likely to ‘sit tight’ and ride out share market volatility.

And while nine out of 10 Australians have some form of investment, those receiving ongoing professional financial advice are more likely to hold a diverse mix of investments, averaging 3.8 asset classes each.

FPA chief executive Jo-Anne Bloch believes professional financial advice can help people ride out volatile financial cycles.

“The fear of recession is widespread, with levels of unease similar across all demographics regardless of age, location or income, and is present both among workers and non-workers,” she said.

“People with long-term financial plans in place and relationships with financial planners can see past these cycles.”

The FPA is currently using Financial Planning Week to reinforce the ‘value of advice’ message and encourage people to plan for life goals and financial security.