June 19, 2014
Almost nine in every 10 Australians do not have a financial plan in place, new research has revealed.
According to Mortgage Choice's 2014 Money Survey, 89.4% of Australians said they “do not currently have a financial plan in place that was created by a financial planner”.
Of those who do not currently have a relationship with a financial adviser, 68.1% admitted that they have no intentions of “seeking financial advice” in 2014.
Mortgage Choice spokesperson Jessica Darnbrough said there were several reasons why the majority of Australians do not wish to seek financial advice this year.
“Almost 50% of Australians said they did not wish to see a financial adviser because they are “comfortable handling their own finances”,” Ms Darnbrough said.
“On top of that, 16.8% of Australians said they would not seek financial advice because they didn't have enough assets, while a further 16.3% said they could not “justify the cost”, and 6.8% said it is something they will do “when they are older”.
Mortgage Choice spokesperson Jessica Darnbrough said these statistics suggest the majority of Australians don't understand the value of seeking financial advice.
“Many Australians wrongly believe that they have to be middle-aged, asset rich, and be on a large income to warrant using a financial adviser, but this is simply not the case,” she said.
“The reality is a financial adviser will work with you at any age and any stage of your life and help you to create a plan that will allow you to not only achieve your financial goals but help you to live a rich life – the life you want to live.
“You don't need to be a millionaire to warrant seeking financial advice. At Mortgage Choice, we believe all Australians, regardless of their income, age or assets, should have the opportunity to take control of their finances and plan for their financial future early on in their lives by accessing real, relevant and affordable advice.
“Further, we believe all Australians have the right to advice they can trust and understand from experts who will take the time to recommend appropriate choices for their needs, which is why we have transitioned the business to include financial planning services.”
Last week, Mortgage Choice announced it had appointed its 30th financial adviser and revealed its bullish plans for the future.
“At present, we are on target to achieve our goal of 60 advisers by June next year. In the 18 months since we launched Mortgage Choice Financial Planning, the business has flourished – thanks to our unwavering commitment to provide our customers with easy access to trusted specialists, choice and professional advice,” she said.
*About the survey
Market research company Nine Rewards was commissioned by Mortgage Choice to conduct the 2014 Money Survey. The online survey was conducted in late February 2014 and completed by 1,064 Australians from a range of financial backgrounds including first homeowner, next homeowner, homeowner and investor, investor only and not a mortgage holder.