News that median ongoing advice fees have jumped 18% over the past 12 months attracted plenty of reader interest this week…
Median ongoing advice fees have reached record highs, climbing 18% to $4,668 over the past 12 months, according to Adviser Ratings’ 2025 Australian Financial Advice Landscape Report.
“This surge comes as the advice demand gap widens, with more than 2.6 million Australians, particularly pre-retirees, in need of advice,” says the firm’s Sales Director Tony Powell.
The median advice fees figure is 67% higher than five years ago according to the report, far outpacing the 20.5% inflation rate during the same period.
“This pricing evolution reflects both the increased cost of delivering compliant advice and the shifting value proposition as advisers focus on more complex client needs and higher-value services,” states the report’s authors.
The report also points to advisers choosing to work with higher value clients, with funds under management typically in the region of $758,000.
This change has also led to practices investing in in-house paraplanners and client service managers “…allowing advisers to maintain relationship quality while servicing more clients”.
Life insurance (66%) comes third in the list of types of advice provided to clients, behind financial planning (88%), and retirement and super (87%).
The report also underscores the “demographic tidal wave” of Australians aged 55-plus, a cohort that will more than double over the next 30 years to 16 million and require up to 40,000 advisers by 2055 to meet their needs (there’s currently around 15,500 advisers).
“This presents a massive opportunity for the entire industry to evolve and deliver solutions that meet their unique needs,” states the report.
Additionally, the average intended early inheritance gift has jumped 35% to $692,000, “highlighting a growing need for wealth transfer solutions”.
Australian advisers also now global leaders in AI, with 74% using or planning to increase their use of AI in their practice.
Client interests are also evolving as crypto enters mainstream advice conversations, with 30% of advised clients expressing an interest (18% in 2024) in the currency.
Key take aways:
- Advised Australians: 10.4% in 2025 (2019: 13.9%)
- Consumer demand for advice: Up 189% on 2020
- Top advice requests by consumers: Building super, preparing for retirement, shares/investments
- In 2025, 41% of clients planning wealth transfers will move $500,000 or more to the next generation, up from 31% in 2024
- 85% of practices are actively pursuing growth strategies
- Existing clients remain the most valuable source of new business, with 81% of practices citing them as a referral channel
