The latest industry research has revealed only one in four financial decision makers across the country trust advice received from financial planners.
RaboDirect’s National Saving and Debt Barometer survey also found only 26 per cent of participants consulted a financial planner, while 48 per cent of respondents chose to rely on their immediate social or professional circle for their financial advisory needs.
“The National Saving and Debt Barometer found that more than half of the population were not confident with their finances. At the same time, people are relying on information from their friends and family before some industry professionals,” RaboDirect general manager Greg McAweeney said.
“The recent turbulent times in financial markets may have caused people to turn away from using financial advisers. This is a serious message for the financial advisory sector, but it also signals an opportunity for the industry to identify ways in which it can rebuild credibility and trust with the general public,” he said.
When asked who they had approached for financial advice, 48 per cent of respondents cited friends, family or colleagues, 35 per cent said a tax agent or accountant, 26 per cent said a financial planner, and 21 per cent named relevant websites.
The study also showed planners are having difficulty engaging with Generation Y individuals, with only 20 per cent of this group receiving some form of professional advice.
Furthermore, women got more utility from professional advice than men.
The report did reveal a recognised need to accelerate financial literacy education programs.
“What is pleasing is that 73 per cent of our respondents highlighted that financial terms and planning should be taught in schools – a proposition that as a leading financial institution we support,” McAweeney said.
The National Saving and Debt Barometer was conducted online, with more than 2000 individuals taking part across Australia.
