A day after AMP released research that found older Australians are financially illiterate about retirement with many unlikely to want financial advice, CFS research has uncovered it is instead the younger generations that are more interested.
The CFS research found over half (53 per cent) of 16-39-year-olds are open to advice, with only 36 per cent of 40–59-year-olds and 15 per cent of those over 60 being interested.
AMP research released earlier this week found three in four over 50-year-olds had not sought financial advice, despite 3 in 5 wishing they had started planning for retirement earlier in life.
However, despite being open to advice, 35 per cent of under 40s believed they couldn’t afford it.
Additionally, 15 per cent of those under 40 don’t know how to access a financial adviser and 18 per cent believe they don’t “know the right questions to ask”.
Almost 2000 consumers were surveyed on behalf of CFS by market researcher Nature in July, including more than 1200 aged 16 to 39.
The research also found 53 per cent are open to digital advice (while only 20 per cent are completely opposed) but 63 per cent of those under 40 are open to a digital advice solution.
The data highlights why the major retail and profit-for-member funds are pursuing digital advice services for younger, lower balance clients with the government’s Quality of Advice Review response expected to open the door for super funds to give more advice.
Insignia Financial already enlisted Israeli-based firm Personetics and digital advice firms MoneyGPS and Advice Intelligence have pivoted their business to adapt to serving the impending advice needs of APRA-regulated trustees.
Research from Investment Trends last November found over 12 million Australians lacking advice, with 81 per cent of 18–34-year-olds saying they have unmet advice needs.
Investment Trends research director Dougal Guild noted two in three Australians were open to using a digital advice tool to plug advice gaps, although likely with some human advice.
“We may also start to see super funds having a larger role to play in addressing the advice gaps with a large number of members surveyed open to seeking advice from their super fund but many unaware of services available,” Guild told Professional Planner last November.