Around 1/10 Australians currently have a Financial Planner or regularly seek financial advice, of that, only a small portion are Millennials. So why aren’t more people, especially Millennials, seeking financial advice? An ASIC report1 from 2010 showed that 39% of people do not believe they have enough money to justify financial advice and 56% believed they do not need financial advice. An alarming figure when approximately 45%+ of people aged between 18-30 have 2 or more superannuation accounts2, though this can sometimes be justified, it may be unsuitable for most.
The majority of Millennials I meet do not even know basic details about their Superannuation accounts, such as where they’re invested, what insurance they have in Superannuation or where their superannuation account balance will go in the event of death. If you can’t confidently answer these 3 questions, you need financial advice. For Millennials, these things are something ‘older people’ deal with down the track. What Millennials needs to understand is, minor changes can be made now, to drastically improve the outcome in their later years or in retirement. So often do I meet with people in their 50’s who tell me “We want to retire in 5 years, what do we need to do?”. The core of Financial Planning is not short term gain; it is about establishing a plan long term to achieve your goals. By the time people approach me in their 50’s it is often too late to create their desired lifestyle in retirement based on what they have now. By seeking advice 10, 20 or even 30 years earlier, a plan could have been established and reviewed regularly to achieve their desired outcome.
Seeking financial advice can be a daunting thought, the financial services industry has had a poor stigma for years and like any industry there will always be a few ‘bad eggs’. However, the majority of advisers do have their client’s best interests at heart and with extremely strict regulations in place, clients can feel comfortable knowing that their advisers must act in their best interests.
So how do I got about finding a financial adviser? Start by talking to friends and family, there may be a trusted adviser in your family/friend network you have access to. Otherwise, ASIC have excellent information on finding an adviser as well as good information on what to expect. I have put a link in the bottom of this article to help get you started3.
I encourage everyone, not just Millennials, to at least ask questions, talk about your goals with friends and family, take interest in your financial well being and seek advice and help from a professional. I genuinely believe that given a reasonable time frame and with the right advice that anyone can achieve financial security, it’s just about taking the first step of showing interest then look at your options around advice.
Information current as of 16 March 2017
This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication.