Australians are Open to Using Super for Financial Advice: Key Findings from CFS Research
Yes, a recent study by Colonial First State (CFS) suggests that Australians are generally receptive to the idea of using their superannuation savings to pay for financial advice. Some key takeaways from the research include:
- Overwhelming Need for Advice: A staggering 93% of Australians surveyed believe having access to financial advice is important. This highlights the general recognition of the potential benefits of professional guidance in navigating complex financial decisions.
- Super as a Preferred Payment Source: Almost two-thirds (61%) of respondents expressed interest in using their super funds to pay for financial advice. This indicates a willingness to invest in personalized recommendations that could ultimately benefit their retirement outcomes.
- Strongest Interest Among Younger Australians: The survey revealed a particularly strong interest in using super for advice among the younger generation, with 76% of those aged 25-29 open to the idea. This could be due to their increased focus on long-term financial planning and a desire to build a secure retirement nest egg early on.
- Existing Clients Open Too: Interestingly, even among those who already have a financial advisor, 74% expressed interest in using their super to cover the cost of advice. This suggests a general satisfaction with the value provided by professional guidance and a willingness to further invest in it.
The CFS research aligns with ongoing discussions about increasing access to financial advice in Australia. The recent Quality of Advice Review (QAR) reforms by the government aim to expand super funds’ ability to provide advice and clarify the types of topics that can be covered through super funds. This potentially paves the way for more flexible and affordable advice options for Australians.
Of course, some important considerations remain, such as ensuring transparency and value for money in super-funded advice, as well as addressing potential affordability concerns for low-income earners. Overall, the CFS research paints a positive picture of Australians’ openness to utilizing their super for financial advice, suggesting a potentially promising avenue for improving financial literacy and retirement security in the country.