Australian retirees receiving expert financial advice have a high level of confidence in their advisers but only one in four retirees are actively seeking expert advice, new research has revealed.
According to research conducted by Allianz Retire+ which surveyed Australians both currently retired and looking to retire in the next seven years, 94 per cent of respondents who had sought professional advice were satisfied with that advice and had a trusted relationship with their advisers.
Allianz Retire+ chief executive Matthew Rady said, “The results emphasise the important role trusted adviser relationships have in helping Australians really retire.”
“The numbers show a fundamental difference that quality advice makes to the confidence of a retiree. We can also see that advisers should be encouraged by the results as a strong indicator of an existing and growing value proposition.”
Despite the high trust rate in the financial advice received among current and prospective retirees, the research also revealed only a quarter of those surveyed had enlisted the help of a financial adviser.
Over half of those surveyed who were above the age of 65 indicated they would not use an adviser and cited the perceived high cost of advice, not having enough funds to invest and confidence in their own financial capabilities as their main reasons for not seeking expert advice.
In addition, while 79 per cent of retirees stated they were responsible for their finances and wanted to feel they had control of their money, 44 per cent revealed they felt insecure in their current financial position.
“The main challenge we believe is to feel confident in retirement. These results indicate more can be done to help Australians become financially literate, benefit from an advice partnership and feel confident with their retirement position,” Rady added.
The results of the “Franklin Templeton Retirement Income Strategies and Expectations Survey” released in November revealed many Australian retirees were managing their retirement finances themselves, with the majority of them choosing not to access advice from financial planners and advisers.
