Financial planners who wish to have a steady and sustainable revenue model should consider looking to the growing areas of economic and social demand and tailoring their advice model for those niches, demographer Bernard Salt says.
One of the key under-serviced areas of society could be the immigrant population, particularly those seeking “trophy lifestyles”, who are reshaping the nature of Australia, the managing director of the Demographics Group told the 2017 FPA Professionals Congress.
He noted increasing immigration from Asia, which is forecast to expand even further in the coming decades. That population will, and should, be planners’ future client base, he added.
“I think migration is a positive for Australia, I’m certainly a major supporter,” he said. “I think this issue of complacent prosperity is the greatest threat to Australia.”
In terms of occupations, Salt said healthcare and social assistance are expanding exponentially, which could provide opportunities for planners. Meanwhile, geographically, the economic activity in Sydney and Melbourne make the two largest cities the most compelling choices for attracting affluent and continually employed clients.
Based on Australian Bureau of Statistics and Census data, which showed areas of occupational growth and demand, Salt predicted there would be an increasing call for financial planners’ technical skills. However, he bemoaned the lack of entrepreneurship in Australia, particularly compared with the US, where the top five companies by market cap were all established after 1975. In comparison, Australia’s top five (BHP Billiton and the banks) were all created in the late 19th and early 20th centuries.
“Is this the Australia you want to bequeath to your kids?” he asked. “I want an Australia where everyone feels like they have a chance for prosperity.”
Salt challenged those in the room to take entrepreneurial risks in the interests of achieving positive economic and social results.
