Charting the Evolution: Contrasts and Opportunities in Australia's Wealth Landscape
In the Australian wealth landscape, a narrative of contrast unfolds. The demand for sage advice climbs steadily, a reflection of the Aussie population’s growing awareness and need for financial guidance. Yet, the supply of such counsel has reached a plateau, an equilibrium that belies the dynamic changes beneath.
Despite this, a silver lining emerges. Business efficiencies have soared, empowering advisers with the capacity to extend their expertise to a broader array of clients than in years past. This expansion is not merely anecdotal; it is quantifiable. Between the years 2022 and 2023, the percentage of consumers embracing advice has swelled, a testament to the shifting tides of financial consciousness. Our own platform echoes this growth, boasting a 36% year-over-year surge in leads.
The plot thickens as we delve into demographics. The pre-retirees, those navigating the waters of 55-64 years, emerge as the predominant seekers of advice. Their quest for financial stability as they approach the twilight of their careers is a poignant chapter in this tale.
Yet, for every story of progress, there exists a counter-narrative. A disquieting 50% of Australians lament a year-over-year financial decline, their pockets echoing the emptiness of unfulfilled aspirations. An even more harrowing statistic reveals that 3 in 5 Australians are now in the cycle of living paycheck to paycheck, a precarious dance of economic survival.
As the story progresses, over two million Australians cast their gaze towards the horizon, seeking the beacon of financial advice in their future. It is a number that speaks volumes, a call for the industry to rise and meet the burgeoning demand.
This tale is one of dichotomy and hope, of challenges and opportunities. It is the story of a nation’s financial journey and the pivotal role of advice in shaping its course.
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Note: As measured by leads through Adviser Ratings website and its affiliated white label sites, ASC, Colonial First State and AustralianSuper
For most Australians, to pay over $500 for financial advice is simply too expensive. Only 20% of us can afford the average fee for such services. The real issue appears to be sitting on the supply side. The majority still seeking advice are between 56 and 65 years old, and this hasn’t changed much from last year. The story of financial advice in Australia is one of high demand and high costs servicing a weakened economy that will continue to feel cost of living pressures for some time to come.
Furthermore, we are seeing a narrative of evolving priorities unfold. While the pursuit of specialist expertise has seen a decline, the overall demand for financial advice is on the rise. This paradoxical trend suggests a shift in consumer behaviour, where a broader understanding of financial well-being is sought after more than niche expertise.
As we journey from 2022 into the present, there’s a noticeable increase in the population’s quest for knowledge in key areas of financial planning. Estate planning, household budgeting, savings investments, cashflow income, property advisory, and tax-effective strategies have all seen a surge in interest. These areas now represent the pillars of financial stability and growth, resonating with the desires of Australians to secure their financial future.
Amidst this growing interest in traditional financial planning, there’s a notable shift in the environmental, social, and governance (ESG) landscape. The impact of ESG on investment decisions is waning, with practice heads observing a decline in queries related to these factors. This change in tide reflects a re-evaluation of priorities, where immediate financial concerns may be overshadowing the previously rising trend of socially responsible investing.
The story is one of adaptation and change, highlighting the dynamic nature of the financial advice landscape in Australia. Like to know more? Please reach out and get your full copy of the 2024 Financial Advice Landscape Report. 
*Note: As measured by leads through Adviser Ratings website and its affiliated white label sites, ASC, Colonial First State and AustralianSuper
