If planning industry marketing campaigns succeed in convincing more Australians to get financial advice, the take-up could exacerbate another problem –
the nation’s shortage of advisers, industry participants have said.
The Association of Financial Advisers (AFA) and the FPA both have strategies in place to broaden the industry as well as their own membership.
However, they are currently focusing on expanding the market for advice, a catch-22 situation that could lead back to the adviser shortage.
“At the moment, we probably have half the financial planners we need,” FPA chief professional officer Deen Sanders said.
The FPA has about 8300 members and the AFA around 2000.
The AFA and FPA are spending millions of dollars to convince Australian households to hire a professional to help them plan for the future.
Sanders said the relatively small portion of Australians getting advice was not a matter of people simply choosing to do without.
“As far as we’re concerned, it’s a national crisis,” he said.
“It’s a genuine national crisis in terms of people being able to resolve their financial future, so anything we can all do to promote the benefits of getting access to advice is going to be a force for positive change as far as we’re concerned.”
The AFA’s campaign aimed to lift the number of Australians getting advice to three in 10 from its current level of two in 10.
The AFA planned to launch its Make a Plan marketing campaign in the second half of this year, and the FPA’s New Vision print and media campaign was in post-production.
“The research we did last year showed people who get advice are happier, are healthier, they’re wealthier, and they have more control. We want to see more people get that experience,” AFA chief executive Richard Klipin said.
Klipin and Sanders said the campaigns would bridge the disconnect between planners and consumers by speaking to people in clear, accessible language.
However, while both groups were happy for their messages to dovetail, neither saw any prospect of officially cooperating to get the word out.
“I think it’s fair to say that Make a Plan is about the AFA addressing the issue of the lack of understanding of the value of advice,” Klipin said.
“It’s very focused on the consumer. Are we doing that in conjunction with any other organisation? No, we’re not. This is the AFA’s initiative.”
Sanders said although the messages were similar, they each had their own ideas to convey.
“It’s always good from our perspective to see other stakeholders pushing in the same direction on these issues,” he said.
“There’s plenty of room in the marketplace for multiple messages.”
