Report shows Aussies turning to friends and family for financial advice30 Jun 2018 4 min read
SYDNEY, 30 JUNE 2018: 55% of working Australians say that they don’t have someone they trust to advise them on personal finance and investing, according to a survey commissioned by NGS Super of 1002 working-age Australians in April 2018. The report, titled Closing the Trust Gap in Finance and Investing, highlights that the lack of trust in the financial services sector has been to the detriment of the relationship between Australian consumers and their financial institutions.
The report shows that in the absence of a professional source of guidance, Aussie men and women are turning to those closest to them for financial advice. Of the men surveyed aged 50 and over who said they have someone to trust for financial advice, 47% classified a friend as a source. Of the women surveyed under age 50 who said they have someone to trust for financial advice, 69% classified a family member as a source.
Interestingly, only a third of all men and women (33% and 28% respectively) said they have consulted an adviser in the last five years while a staggering 60 per cent of those under 50 years of age (split almost equally between men and women) reported not having anyone they felt they could trust when it comes to investment advice.
Laura Wright, Acting Chief Executive Officer of NGS Super, recognises that the industry needs to work harder to improve consumer confidence which has been rocked in recent months. She notes that while the financial services industry has made steps to address the lack of trust amongst consumers, more needs to be done to rebuild confidence in the sector.
“Our research highlights an opportunity for the industry to educate Australians young and old on the value of receiving quality, unbiased and professional financial advice in addition to actively demonstrating the benefits.
“The trust deficit in advice represents a solid opportunity for industry superfunds in particular to step up and be champions for the financial advice industry with our member-first proposition, where we don’t pay commissions to our advisers who work in the best interests of members. Unfortunately too many Australians are unaware that their industry superfund offers financial advice and planning services, with less than 1% of our members taking up our Fund’s financial advice offering.
“While there is absolutely a need to address problems in the industry that have or could adversely impact customers, we also need to call out all the positive stories that so many of our members have experienced from their advisers to ensure that they have absolute peace of mind that their financial future is in safe hands”, Ms. Wright added.
Other findings of the report revealed:
- 50% of people (split evenly between men and women) surveyed stated they were likely to find superannuation complex, with male and older respondents (those over 50) more likely to feel confident in their knowledge of superannuation and investing.
- Only sixty per cent of women (vs 71% men) were able to choose their own adviser they met with, despite women being more likely than men to want this choice
- Amongst those who were able to choose their adviser, eighty-six per cent reported they were satisfied with the experience, compared to sixty-two per cent of those who were unable to choose.
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Marketing and Communications Manager, NGS Super
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About NGS Super
NGS Super is a leading superannuation fund for all Australians. We specialise in the non-government education and mutual finance sectors, working with around 9000 employers and managing around $8.8 billion in super savings.
We’re run only to benefit members and keep our costs low which means all profits go back into the fund to help secure the financial futures of our 100,000 members.