Volume of advisers’ potential clients rises by 74%
Population growth combined with shrinking number of advisers means there has been a 74% rise in the number of people per adviser, presenting an opportunity for those remaining in the industry.
According to data from the Australian Bureau of Statistics (ABS), the Australian population had grown from 24.2 million people in 2018 to 25.8 million in 2022.
Meanwhile, the number of advisers had fallen from over 28,000 at the end of 2018 to below 16,000 to currently stand at 15,854.
The two factors combined had led to a 74% rise in the number of people per adviser from 900 to 1,567.
Demand for advice was on the rise with 5.6 million Australians looking to seek help from a financial adviser. The age bracket with the highest number of advised consumers was 65+ years (590,000) followed by 55-64 years (530,000) and 45-54 years (390,000), according to Adviser Ratings.
Meanwhile, there was a higher value of superannuation which had doubled to $201 million per adviser. According to the Association of Superannuation Funds Australia (ASFA), the total superannuation assets as of September 2022 were $3.3 trillion.
This meant the value of superannuation spread across this population had grown from $89,449 to $127,936, said Wealth Data.
Divided by the number of advisers remaining in the market, some 15,854, this was $201 million per adviser. This was more than double the figure in 2018 when it was $88 million.
Looking at more recent adviser movements, Wealth Data said there was a net change of 10 advisers in the week to 8 December with 24 licensees having net gains of 24 advisers and 23 licensees having net losses of 53 advisers.
Four new licensees commenced and four ceased while there were three new provisional advisers.
In particular, Wealth Data noted AMP Group was down by a net of 17 advisers, 15 of the 20 departures switched to an alternative licensee including seven who went to PSK.
AUTHOR
Laura Dew
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Not for me. We will pick and choose, rejecting tyre kickers and those that don't want to pay full freight fees. We will maintain our closely held client base, rarely accepting any new client who is not a relative of existing clients. Confident in the knowledge that we can always rely on the idiot regulators and politicians to put us out of business at any time, we will take the income in liue for as long as possible. Slow clap, well done to the otherwise unemployable fucktards that run the show.