{"id":80055,"date":"2025-11-05T00:10:15","date_gmt":"2025-11-04T13:10:15","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=80055"},"modified":"2026-07-21T10:16:54","modified_gmt":"2026-07-21T00:16:54","slug":"advice-access-key-to-rebuilding-australias-safety-net","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2025\/11\/05\/advice-access-key-to-rebuilding-australias-safety-net\/","title":{"rendered":"Advice Access Key to Rebuilding Australia\u2019s Safety Net"},"content":{"rendered":"

Australians\u2019 confidence that they can rely on the nation\u2019s safety net when things go wrong is being eroded \u2013 not only by rising cost-of-living and mental health pressures, but by limited access to financial advice.<\/p>\n

This is one of the central findings of the State of Australia’s Safety Net 2025 Report<\/a>, released by the Council of Australian Life Insurers<\/a>, which paints a picture of working Australians struggling to stay financially covered, mentally well and confident about their future security.<\/p>\n

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CALI CEO Christine Cupitt at the Riskinfocus 25 event in Sydney earlier this year …calling on the Government to legislate the remaining DBFO reforms, including the New Class of Adviser<\/figcaption><\/figure>\n

CALI Chief Executive Officer Christine Cupitt<\/strong> said the research shows how fragile Australia\u2019s safety net has become across all stages of working life.<\/p>\n

\u201cWhether they\u2019re starting out, raising a family, or approaching retirement, working Australians want the same thing: confidence that if something goes wrong, there is a system to fall back on,\u201d Cupitt said, adding:<\/p>\n

\u201cRight now, rising mental ill-health, cost-of-living pressures, and limited access to advice are eroding that confidence.\u201d<\/p>\n

Advice Gap Widening as Costs Rise<\/strong><\/p>\n

According to the report, just 8% of working Australians received financial advice on life insurance in the past year, despite one in three wanting it.<\/p>\n

This persistent advice gap means many people are making financial protection decisions without professional guidance. The research also found that half of working Australians now say they trust online sources for financial advice, underscoring the growing reliance on unregulated information channels.<\/p>\n

Cupitt said the findings reinforce the importance of affordable, accessible financial advice:\u00a0\u201cIf we strengthen the system now, it will be there to catch more Australians tomorrow,\u201d she said.<\/p>\n

CALI has renewed its call for the Federal Government to legislate the Delivering Better Financial Outcomes reforms, which it says would enable life insurers and a new class of advisers to offer limited advice on life insurance products.<\/p>\n

The industry body also wants clear pathways to help pre-retirees access lifetime income streams to support a smoother and more confident transition into retirement.<\/p>\n

Cost-of-Living and Coverage Pressures<\/strong><\/p>\n

CALI\u2019s research reveals financial strain is widening the protection gap. Seven in ten working Australians say cost-of-living pressures are affecting their ability to maintain life insurance, while one in three are very concerned \u2014 particularly those aged 35 to 54 managing mortgages and family expenses.<\/p>\n

The report highlights that this group is balancing multiple financial commitments at the same time they are least likely to receive advice, leaving them vulnerable to underinsurance or lapses in cover.<\/p>\n

Mental Health: A Leading Cause of Disability Claims<\/strong><\/p>\n

The report also reveals that mental ill-health is now the leading cause of TPD claims in Australia. Data provided by CALI\u2019s research partner SuperFriend<\/a> shows burnout and psychological distress are widespread, affecting every generation in the workforce It reports:<\/p>\n