More Australians back accessible financial advice as pressures stretch from household budgets to the global economy

Australians are feeling the weight of financial pressures that extend far beyond their household budgets, with new research from Colonial First State (CFS) revealing Australians report an average of nine financial concerns, spanning the cost of living to global economic conditions.

The findings, released in the latest edition of the annual Empowered Australian Report, show cost of living remains Australians’ biggest financial concern (76%). 

The findings also suggest geopolitical and economic uncertainties are weighing heavily on Australians. Recent global events (such as instability in the Middle East) were a concern for 69% of Australians, slightly outpacing concern about housing affordability at 65%. 

Broader economic issues are also worrying Australians, with 63% concerned about the global economy and 62% concerned about the Australian economy.

Since the previous survey, concerns have risen across almost every comparable category, with the sharpest increases relating to the global economy.

Australians increasingly back accessible financial advice

Against this backdrop, many Australians are open to support in helping them manage their finances. 

The research found 72% of Australians who are open to receiving financial advice would consider it if it were available at a reasonable cost, up from 59%. A further 88% believe financial advice should be accessible for all Australians, up from 82% in our previous survey.  

This comes as the Federal Government has announced reforms aimed at increasing access to financial advice. 

CEO of CFS Superannuation, Kelly Power, said: "Australians are again telling us they see value in financial advice and want it to be within reach of more people."

“We are encouraged by the Federal Government's recent steps towards increasing access to financial advice. Once again, these findings reinforce the significant role financial advice plays in the confidence Australians have in their finances, and their prospects for retirement," Ms Power said. 

A big pool of information, a small circle of trust

Australians are accessing financial information from a range of sources. Among Australians under 40, finance websites, YouTube and social media influencers all recorded significant increases in use, while superannuation providers also became a more commonly used source of financial information.

When it comes to the sources they use for guidance about their finances, partners, financial advisers and family rank highly for trust. In addition, financial advisers stand out as one of the most used and trusted sources of guidance. 

“Australians have more financial information at their fingertips than ever before, but when it comes to important financial decisions, trusted relationships still matter,” Ms Power said.

The findings also suggest a shift in what Australians value from financial advice. While investment performance remains important, Australians are placing greater value on navigating complexity and feeling reassured and confident in their financial decisions. 

“Performance will always be important, but financial advice is about more than that. Australians increasingly value the expertise, reassurance and confidence that advice can provide, especially during periods of uncertainty,” Ms Power said.

Retirement the leading reason Australians seek advice

The report found Australians seek financial advice for a variety of reasons, from retirement planning and major life events through to changes in their financial circumstances. The most common reason Australians with a financial adviser first sought advice was because they started thinking about retirement.

Australians with a financial adviser are also more confident about their retirement prospects, with 79% of advised Australians confident about their ability to have enough money to retire, compared to 45% of those without an adviser. 

Importantly, 44% of advised Australians said they regret not getting advice earlier.

“The fact that nearly half of Australians with a financial adviser wish they had sought advice sooner is a reflection of the impact a financial adviser can make in the lives of their clients,” Ms Power said. 

You can access the Empowered Australian Report here.