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Millions of Aussies don’t get financial advice

Australian walking. Australian money notes. Financial advice concept.
The majority of Australians don’t get financial advice and are taking their money into their own hands. (Source: Getty)

Millions of Australians don’t use a financial adviser, new research has found, and many are taking their finances into their own hands.

Just 16 per cent of Aussies have a financial adviser, according to a national Finder survey of 1,054 people. Men are more likely to seek out financial advice, with 18 per cent using an adviser, compared to just 13 per cent of women.

So, why are we doing it alone? The most common reason Australians said they didn’t get financial advice was because they preferred to manage their money themselves (42 per cent). This was closely followed by the advice being too expensive (39 per cent).

The median ongoing fee for a financial adviser is about $3,529, according to Adviser Ratings. That’s an increase of 41 per cent over the past four years.

But there’s a stark difference between the actual cost and what Aussies are willing to pay. The majority of Aussies (57 per cent) aren’t prepared to pay anything for financial advice, while the rest of the country is prepared to pay just $1,164 on average. Baby Boomers are happy to spend the most at $1,396, but that’s still well below the average cost.

Finder investing expert Kyle Purcell said cost was a huge barrier for many Australians wanting financial advice.

“There’s also a perception that you need to have a lot of money to receive professional financial advice,” Purcell said.

“Almost a third (29 per cent) of Aussies who don’t get financial advice say their net worth isn’t high enough to warrant the cost.”

Many Aussies (27 per cent) simply don’t see the benefit of seeing a financial adviser, while

some (17 per cent) don’t trust them.

The financial-advice industry has faced a number of scandals over the years, including billing customers fees for no service and charging dead people. The banking royal commission found the industry was plagued by greed and dishonesty.

Financial advisers now need to meet new professional standards. A number of advisers have left the industry.

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