Winning over the unadvised amid $3.5tn wealth wave
Lower fees and trustworthiness are the top factors enticing unadvised Australians to seek a financial adviser, according to Fidelity International.
The firm’s Next Generation research, surveying over 1,000 Australians aged between 18 and 59 years old, assessed the top considerations driving individuals’ likelihood to engage with an adviser.
Lower fees was cited by 61 per cent of respondents who are not currently advised, alongside trustworthiness at 58 per cent.
Some 44 per cent said “understanding my financial goals” would encourage them to see an adviser, while 40 per cent said “recommendations from friends or family”.
Other key drivers for the unadvised include providing more personalised advice (37 per cent), qualifications (37 per cent), easier access such as online consultations (31 per cent), and availability of digital services (20 per cent).
“Gen Z and Gen Y are more likely to engage if there was easier access, e.g. online consultations, compared to Gen X and also if there is access to financial education,” the report wrote.
“Short summaries, educational material and video tutorials are the most likely content to resonate. Podcasts are notably much more popular among Gen Z and Gen Y compared to Gen X.”
On the flip side, Fidelity also underscored the potential concerns with finding a financial planner. Affordability topped the list at 50 per cent, followed by “difficulty finding someone to trust” at 39 per cent, and potential bias at 28 per cent.
Netwealth data recently found the most common reason why clients stopped seeing their adviser was due to the expense or cost. This was followed by clients wanting to manage finances themselves (36 per cent), “learning all I could from that adviser” (29 per cent), and not feeling like their finances were large or complex enough to have an adviser (23 per cent).
Given the well-reported $3.5 trillion set to be transferred between generations over the next two decades, Fidelity International’s Australian head of wholesale sales, Lauren Jackson, recognised the pivotal role that advisers have to play.
“There is a significant opportunity for professional advisers to provide critical guidance on how to handle this financial transition, which often includes legal, tax, and investment challenges,” she said.
“Many next gens require guidance on debt management, investment strategy, alignment with personal values, and managing family dynamics. The financial services industry should be prepared to cater to this growing demand for ‘next gen’ advice.”
AUTHOR
Jasmine Siljic
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