In this guide
All information on SuperGuide is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate for you before acting on it.
If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions. Learn more
Australians are reluctant to seek professional advice, even when they acknowledge they need it. According to the Investment Trends 2023 Financial Advice Report, almost 12 million Australians have unmet advice needs. Â
For past generations, financial advice was not such an issue. The average Australian worked, bought a house, raised a family and retired on the Age Pension. But the introduction of compulsory super changed all that.
Now every Australian with a super account is exposed to capital markets and the impact of market twists and turns on their account balance. We are also encouraged to fund our own retirement, so the performance of our super, how it intersects with the Age Pension, other investments and constantly shifting super rules really matters.
The growing complexity of our retirement system means most people will need advice to get the most out of their super and plan for retirement.
A matter of trust
The main reason people give for not seeking financial advice is cost, as rising fees and falling adviser numbers put advice out of reach for many Australians. Industry estimates put the initial cost to set up a plan at anywhere from $4,000 to more than $10,000. But trust is also an issue.
The Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry seriously dented the reputation of the advice industry. The commission unearthed conflicts of interest where advisers were rewarded for selling certain products whether they were in the client’s best interests or not, as well as systematic overcharging, hidden fees, and fees for no service.
Despite recent reforms, the industry has a way to go to regain the community’s trust.
The good news is that there is excellent, free advice available from government and community organisations, and your super fund may also be able to offer you limited advice without an additional cost.
In this article, we cover the advice that may be available from your super fund, the government’s free Financial Information Service, tools available from the Australian Securities and Investments Commission (ASIC) via the Moneysmart website and financial counselling services for those in financial difficulty.
