Despite using a financial planner, almost one-third of Australians worried they would be poor in their retirement, the latest survey from Investment Trends showed.
However, anxiety about retirement surged to 42 per cent among Australians who did not use a financial planner.
Investment Trends senior analyst Recep Peker said the survey of 1027 planners showed 28 per cent of clients who used a planner “feel that they are not on track to achieving their retirement goals”.
“However, Australians who use a planner are more likely to feel on track to achieving their retirement goals,” Peker said.
“The proportion who don’t feel on track is 19 per cent higher at 42 per cent among those who don’t use a planner.”
The Retirement Planner Report also revealed planners considered themselves highly expert in servicing retirees and were providing more advice on retirement-specific needs.
Peker said planners estimated 33 per cent of their clients aged under 75 would depend on the age pension for more than half of their income when they retired, growing to 54 per cent by the age of 84.
Consequently, planners advised 69 per cent of pre-retiree clients to contribute more to their super, 26 per cent to retire later and 13 per cent to downsize their home.
“Most planners are not shy of recommending the tough strategies required to help their clients get closer to their retirement goals,” Peker said.
Another trend to emerge from the survey was that planners were looking to product manufacturers and providers for support and education to service retirees and pre-retirees.
Almost all planners (97 per cent) rated their professional expertise in understanding the needs of, and ability to, provide advice to retirees as average or above.
“Planners see themselves as highly expert at advising retirees and are calling for a range of tools to help them do better still,” Peker said.
Planners were also looking for more support around servicing retirees and pre-retirees, with 90 per cent saying that planning tools or product providers could help them better service these segments.
“One key area of support sought is around providing more education to the public, with 54 per cent of planners citing this as an area product providers can help them with,” Peker said.
Retirees comprised 40 per cent of the average planner’s client base and some planners wanted to increase this.
More than one-third (36 per cent) thought retirees would comprise more of their client base by 2014, while one-quarter (25 per cent) planned to decrease the role retirees played.
“Planners intend to provide more advice on retiree-specific needs, especially aged care,” Peker said.
“In 2011, 78 per cent of planners had provided advice around aged care to one-fifth of their pre-retiree and retiree clients. By 2014, 89 per cent of planners expect to do so to 28 per cent of their clients.”
