Financial planners winning more clients’ hearts
The numberof consumers using a financial planner for advice has increased, particularly among the older generations, with people aged 35 or older more likely to use a financial planner for advice than any other source, the latest Financial Planning Association (FPA) consumer sentiment survey has revealed.
Survey respondents who ticked yes to using a financial planner climbed by five per cent since 1997, while over the same time frame the number of people obtaining financial planning advice from an accountant decreased by 13 per cent.
The survey, carried out in May by RMIT University for the FPA, showed the number of people using a financial planner increased as age increased, with 33.8 per cent of those in the 35 to 49 age group, 46.8 per cent in the 50 to 59 age bracket and 57.4 per cent of people aged 60 years and older choosing a financial planner above a bank manager, solicitor, accountant, stock broker, life insurance agent or friends and family.
Satisfaction of advice was also gauged by the survey, revealing women were more satisfied with the level of advice they were receiving than men, with 48.5 per cent very satisfied women as opposed to 36.2 per cent very satisfied men. However, a greater proportion of men (50.7 per cent) were satisfied, than women (34.8 per cent).
Looking at the states, Melbourne was most satisfied with the advice being received (64.3 per cent) closely followed by Adelaide (58.3 per cent), and then Hobart (55.6 per cent).
Consumers based in Sydney held the most dissatisfaction with the financial advice being given (27.5 per cent), followed by Canberra (18.2 per cent). Melbourne held the lowest dissatisfaction rate of 3.6 per cent.
The survey found younger consumers continue to rely predominantly on family and friends as their source of advice, with 62.9 per cent of 18 to 24 year olds and 37.1 per cent of 25 to 34 year olds seeking advice from this area.
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