Super fund backs value of advice
|
|
Big West Australian super fund GESB is backing calls for Australians to receive greater encouragement to obtain financial advice.
The fund has based its position on its own research, which shows that Australians often seek financial advice in the wrong places. According to the research, one in three Australians prefers to take advice from their family, compared to the one in six who are likely to visit a professional financial adviser.
GESB general manager of wealth management Fabian Ross said that at a time when Australians were living longer and facing increased barriers to retirement saving, such as the reduction in concession contribution caps, it was more important than ever that they were encouraged to seek financial advice to plan and save efficiently over the long term.
"A person's level of income or assets should be no barrier to accessing financial advice that could help ensure an adequate income during retirement," he said.
Ross said the industry had a long way to go to educate Australians about the role of professional financial advice in helping to ease the risks to super and retirement saving like longevity, market fluctuations, inflation, liquidity and early death.
He said that while the fee-for-service versus commissions debate was important to consumers, there was an even more pressing need to increase consumer understanding of the value of advice.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
