1. Retirees anxious – The AFR’s Aleks Vickovich reports this week 80 per cent of older Australians are fearful their investments are not safe in the wake of the pandemic. But worryingly, the same percentage of the cohort in the Alianz research have not sought financial advice during the pandemic, with two-thirds indicating they thought advice was too expensive and one-third believing the service was only for “the rich”. “We have to change perceptions of financial advice among retirees and increase access to affordable advice,” Matt Rady, chief executive of Allianz Retire+ said. “Those with an adviser told us they feel more confident and secure in their financial position.”
2. Good advice is good value. What’s interesting about the above research is that those who sought advice were feeling much more confident about their retirement – they felt things were under control. So while advisory may still have a perception problem, for those who do use the service wisely, they’re feeling the positive effects.
3. We’ve long spoken of an industry reset, one where multidisciplinary firms rise to the forefront of the sector and the value financial advisors provide their clients with is highlighted. It’s something that The Australian’s James Kirby discusses in his column this week. “Every industry across the nation’s economy will have its own version of a post-pandemic recovery, but financial advisers must go a little further than that. The sector has to rebuild a professional reputation that was torched by the Hayne royal commission, an exercise made worse as the nation’s biggest banks walked away from the area.” More here.
5. More bumps ahead. A long, U-shaped recovery seems to be what’s ahead of us according to a panel of experts put together by Money Management. The group recommends keeping clients patient, well-diversified and focused on the long game. More here.