New research conducted by the Financial Planning Association of Australia (FPA) ahead of the 16th annual Financial Planning Week has highlighted an opportunity for financial planners to bring to life the hopes and dreams of clients through financial advice.
The research uncovered that one in two Australians (51%) are dreaming more about the future than they did five years ago. However, more than two in five Australians (63%) have not mapped out a financial plan to turn these dreams into reality.
FPA CEO, Dante De Gori, CFP® said the Dare to Dream research paper aimed to uncover the top financial goals, hopes and dreams for Australians across all life stages, while identifying the obstacles to seeking professional advice.
“The findings of our Dare to Dream research show that as a nation, we are dreaming more, but we often aren’t living to our full potential. This might be because of fear, apathy, or a lack of planning. For financial planners, these are valuable insights into their client base, ” said Mr De Gori.
The research, which surveyed 1,016 Australians split across Baby Boomers (born 1946 – 1964), Generation X (born 1965 – 1979) and Generation Y (born 1980 – 1994), revealed that the most common goal across all demographics was a financial one (34% of those surveyed).
“These findings reinforce the main goal of Financial Planning Week. That is, to reframe the conversation around financial advice by showing consumers that, by seeking the right advice from a financial planner, they can achieve their dreams, whether that be home ownership, travel, investment, or simply to pursue their hobbies and interests,” said Mr De Gori.
“Through our research we have identified different risk habits and financial planning interests of Australians along with the motivators and barriers to a better financial future. This research will in turn allow FPA members to gain a deeper insight into their clients’ mindsets and plan accordingly,” said Mr De Gori.
As well as the Dare to Dream research, this year’s program will include a shareable social media quiz, real-life video stories and commentary from celebrity ambassador and social commentator Jane Caro.
Mr De Gori said that by releasing the research he hopes to open up more frank conversations around financial wellbeing and get more Australians thinking about a financial plan.
“The good news is that 82% of those surveyed are optimistic about their future, and we believe that with the right advice this optimism can translate to achieving their dreams.
“I encourage all financial planners to use Financial Planning Week as an opportunity to spread the word to Australians that, with the right advice, they can make the journey from dreaming to achieving their financial goals.
“Additionally, FPA members can promote Financial Planning Week within their own channels. They can do this by accessing the content in the campaign toolkit which will be sent out to FPA members by email,” concluded Mr De Gori.
Four financial “dreamer” personalities:
Four distinct financial dreamer personality types emerged from the FPA’s Dare to Dream research into Australians’ attitudes to money, risk and financial dreams: Poker Master, Mover & Shaker, Easy Rider and Rule Keeper.
Australian men are most likely to identify as Movers & Shakers, while women are most likely to identify as Rule Keepers. Below is the national split across all generations surveyed:
POKER MASTERS (12%) – daring when it comes to finances, and willing to take substantial risks for significant gains. Of these, 46% are female and 54% are men.
MOVERS & SHAKERS (33%) – takes calculated risks for significant gains, focused on saving for the future. Of these, 40% are women, 60% are men.
RULE KEEPERS (40%) – likes playing it safe by taking minimal to zero financial risk. Of these, 61% are women, 39% are men.
EASY RIDERS (15%) – often spontaneous about spending money, likes to play it safe and keep financial risks to a comfortable minimum. Of these, 48% are men, 52% are female.
