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The strong link between advice and retirement confidence

Seeking professional advice could lead to greater confidence in being financially prepared for retirement.

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Vanguard’s inaugural How Australia Retires study has found a strong correlation between the use of a professional financial adviser and retirement confidence.

Our survey of more than 1,800 working and retired Australians aged 18 years and older found that, of the people participants who received professional financial advice, 44% indicated they were extremely or very confident in funding their retirement.

These people were also twice as likely to have a clearer, more detailed retirement plan.

But the study also found that almost 2 in 3 working-age Australians (those who did not identify as retired) have never engaged a financial adviser to help map out their retirement strategy.

And, of the Australians who have never sought any professional advice, only 25% indicated they were extremely or very confident in being able to fund their retirement.

Source: Vanguard

Furthermore, those who had not sought professional advice or sought only the assistance of family and friends tended to have less comprehensive retirement plans.

There were some other interesting findings from our study in terms of where some people are getting advice from.

Working-age Australians, particularly those with low retirement confidence, are much more likely to seek information from digital sources including podcasts, blogs, and social influencers.

That contrasts with retired Australians and those with high retirement confidence, who predominantly consult professional sources of guidance, such as financial advisers or their superannuation fund.

Budgeting and regular savings

Working-age Australians who did not seek professional advice and developed their own financial plan are relatively likely to have prioritised budgeting and regular savings.

In contrast, people who have a more detailed plan from an adviser have typically taken more purposeful action to prepare for retirement, particularly in debt management and budgeting. They are more likely to make additional superannuation contributions and invest in securities and property, the study found.

In fact, contributing regularly to superannuation is a key trait of Australians who presented as having high confidence about their retirement.

Conversely, the majority of people presenting as having low retirement confidence typically did not do so.

Vanguard Australia’s Managing Director, Daniel Shrimski, says the study highlights both the opportunities and challenges facing Australians on their journey towards retirement.

“One of the key findings in this report is that having a well-documented and detailed financial plan is one of the most effective ways to not only achieve a successful retirement, but to alleviate the emotional burdens and anxieties that Australians can feel towards retiring,” Mr Shrimski says.

 

 

 

Tony Kaye, Senior Personal Finance Writer
May 2023
vanguard.com.au

 

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Louise Laing

Louise founded Salus Private Wealth to offer high quality personal advice to clients who want to work closely with an adviser for the long term. Her philosophy that understanding each individual and their motivations and needs is key to an enduring and successful financial planning relationship is at the heart of the business.

She first engaged the services of a financial adviser herself when she was in her early 20s (long before becoming one) and believes the non-judgemental support and education about her position and options provided at this early stage has allowed her to make confident decisions in different aspects of life since then.

This confidence and positivity in making choices, financial or not, is what she wants to give to her clients.

Superannuation & Retirement

Superannuation is one of the largest and longest duration investments most people in Australia have, making it a critical part of long-term planning even if retirement feels like a distant objective. For those in the lead into retirement, we design strategies so you have peace of mind that when you start to draw on your retirement savings, you have liquidity and stability to support that.

Legislation and rules are changed regularly, so advice can help you take advantage of opportunities to build for the future. We are authorised to provide advice on and to SMSFs.

Contact us today to discuss how we can work together: (02) 8044 3057 or email us at info@saluspw.com.au

Insurance

Protecting your wealth, lifestyle and family is high on the priority list for many clients and this is an area of advice need that can change very quickly. Ensuring you have the cover you need can give peace of mind that what’s important is taken care of in the event of illness, injury and death, but we also make sure over time you are not paying for cover you no longer need.

Contact us today to discuss how we can work together: (02) 8044 3057 or email us at info@saluspw.com.au

Estate Planning

While talking about death doesn’t seem like a particularly appealing prospect, it’s a topic we see as a vital part of financial planning. Importantly, it’s a topic for every adult, regardless of their stage in life. Without a proper estate plan assets may not be passed where you’d like them to go, family conflict can ensue, and in the event you lose capacity there may not be an authority in place for the person you would choose to make those decisions for you to do so. While it can be an uncomfortable subject, we are experienced in facilitating these conversations as part of our advice process.

Contact us today to discuss how we can work together: (02) 8044 3057 or email us at info@saluspw.com.au

Strategic Debt & Cashflow

Managing debt efficiently can have a material impact on your financial wellbeing and lifestyle. Having a solid plan to understand where your money goes and manage cashflow and debt can eliminate stress and set you on a positive path toward achieving your goals.

Contact us today to discuss how we can work together: (02) 8044 3057 or email us at info@saluspw.com.au

Investments

Once we have a clear understanding of what we are aiming for and how you feel about taking on investment risk, we can help direct your funds into appropriate investments to meet your goals. This includes recommending the investment structure, consideration of tax implications, asset types, and putting together a suitable blend for you. You will have transparency of and access to view your investments, providing security.

Contact us today to discuss how we can work together: (02) 8044 3057 or email us at info@saluspw.com.au

Aged Care

Aged care needs can arise suddenly. The complexity of managing this can be a significant challenge at a time when your focus should be on the person requiring care. We can assess the alternative funding options to ensure you make an informed choice in the best interests of the person requiring care.

Contact us today to discuss how we can work together: (02) 8044 3057 or email us at info@saluspw.com.au

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The Trustee for Laing Weaver Family Trust T/A Salus Private Wealth (Corporate Authorised Representative No. 1305571) and all our advisers are Authorised Representatives of Finchley & Kent Pty Ltd, Australian Financial Services Licence No. 555169, ABN 50 673 291 079, and has its registered office at Level 63, 25 Martin Place, Sydney NSW 2000.

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