The financial advice profession is finally experiencing renewal after years of setbacks, according to Adviser Ratings latest Landscape Report.
The research firm says that for the first time in five years, the profession’s numbers are stabilising, with just over 15,800 advisers now working in Australia.
“For advisers and practices who have stayed the course, many have reported increases in revenue and profitability in the past 12 months,” Adviser Ratings says.
The company, which bills the report as Australia’s most comprehensive snapshot of the wealth management industry, says the in-depth research also illustrates the perception of advice – and its importance in the current climate – is changing, with almost one-in-five Australians willing to pay up to $5,000 to see an adviser.
Key findings:
- Almost one-in-five Australians would pay between $2,500 and $5,000 for financial advice, compared to 4% last year
- Supply challenges mean fewer than 10% of Australians are now receiving retail financial advice
- The median cost of advice has risen a further 5% to $3,710
- 80% of Australians who want advice couldn’t afford to pay what the average adviser charges
- Adviser Ratings platform leads have hit an all-time high, indicating the growing demand for advice
Adviser Ratings CEO, Angus Woods, said it’s clear the industry has turned a corner.
“Advisers who have invested in their business and profession are starting to reap the rewards, with high client demand, profitability and a greater menu of tools to help them succeed,” he says.
Woods notes that Australians are also “…recognising advisers play a critical role in planning for the future and managing shorter term financial pressures, particularly at a time of interest rate rises, market gyrations and inflation.”
…the demand for professional advice is set to grow even further…
He adds that as Australians face extreme cost of living pressure, the demand for professional advice is set to grow even further.
“Advisers are responding by adding to their client load and making material changes to their businesses to improve efficiency.”
The research also examines advisers’ investment and technology sentiment.
Woods says there are clear winners and losers when it comes to platforms and technology, “…with advisers too time-poor to deal with inferior service.”
The Landscape Report also provides insights into advisers’ intentions for the next 12 months, with succession planning and process efficiencies among the top areas of concern for the coming year.
Click here to see the full report.
