Most Australians do not feel positive about their financial future and lack confidence when making decisions about their superannuation, according to the latest research from Colonial First State.
CFS commissioned a survey of 1,828 Australians who have never received financial advice and 708 who have received advice in the past. It found striking differences between them, even where net wealth and household income are equal.
Three-quarters (75 per cent) of advised respondents, as well as the same proportion of unadvised consumers, admitted they are either ‘very concerned’ or ‘extremely concerned’ about current costs of living.
In a controlled sample of consumers with the same levels of wealth and household income, more than two-thirds (68 per cent) of those with a financial adviser said they are positive about their current financial position, compared to 45 per cent of those who do not receive advice.
Looking beyond their cost-of-living concerns, 71 per cent of advised Australians said they feel ‘very positive’ about their financial future, compared to just 44 per cent of those who have never received advice.
Of those who currently have a financial adviser, 67 per cent said they are confident to make decisions about their superannuation, compared to just 40 per cent of those who have never received advice.
The research also showed that advised Australians feel they have a decent understanding of investments, with 57 per cent saying they have ‘very good or excellent knowledge’. Less than one in three (30 per cent) unadvised Australians could say the same.
Additionally, 75 per cent of Australians who have received financial advice prefer having a wide range of options, whereas only 60 per cent of those who have never received advice share this preference.
Moreover, 64 per cent of Australians who have received financial advice are more inclined to take risks with their savings for investments. In contrast, only 38 per cent of people who have not received advice share the same willingness to take such risks.