Investors need to understand that term deposit investments are unsustainable whilst market uncertainty persists and interest rates continue to drop, according to WHK Group.
"The biggest opportunity for 2013 is having investors see that sitting in term deposits won't earn them the income levels to maintain their living standards, with decreasing interest rates on savings. This change will hopefully drive action," WHK Group chief economist Darryl Gobbett told InvestorDaily.
"There's more uncertainty than ever and more than ever the responsibility sits with the individual. All of this in an environment in which getting your investment processes and selection right will likely have a significant impact on your future living standards," he said.
Mr Gobbett explained that globally, interest rates are generally at record lows whilst public sector debt remains at record highs.
In contrast, company profitability and cash flows are at record highs, but share prices are yet to recover to 2007 levels.
"At the same time, social, financial and government regulatory changes are pushing even more responsibility on to the individual. And more concerning, the risk of looking after post-work wealth and income sits squarely on their shoulders," Mr Gobbett said.
WHK Group head of financial services John Nantes said that the biggest challenge in 2013 will be the significant change brought about by these regulatory changes.
"[WHK's] initial focus of the year will continue to be around Future of Financial Advice (FOFA) readiness and system and process efficiency," Mr Nantes told InvestorDaily.
"Alongside a process focus, we see a significant opportunity around the broader market's awareness levels of our offering. We will continue to focus on what we've always done - giving quality advice that is based on our client's circumstances, needs and objectives," he said.
