Research shows young Australians falling into advice gap
The Council of Australian Life Insurers warns most young people are missing out on financial advice, despite growing demand.
It points to new research showing 49% of Australians aged 18-34 want advice, notably on life cover, but only 11% have received any.
Of those seeking advice, 57% want personalised help to determine how much cover they need, with only 16% preferring basic information.
CALI CEO Christine Cupitt says the data reveals a need for the industry to provide “affordable, timely and personalised support”.
“We have a growing generation of Australians who are motivated to make smart financial decisions, but for many, professional advice is out of reach,” she said.
“That’s what the government’s Delivering Better Financial Outcomes reforms are all about, and it’s critical they stay on track.”
She warns those who cannot obtain professional advice are turning to more informal sources, with 41% taking advice from family and friends, 34% relying on online forums, and 20% social media.
“Instead of getting help from a qualified adviser, younger Australians are piecing together advice from friends, Google searches and TikTok videos; sources that aren’t always accurate, tailored or in their best interests.”
The research shows personal experiences are driving young Australians to consider life insurance, with factors including changes in financial circumstances, witnessing another person’s illness or their own ill health.
Financial advisers are increasingly optimistic about the industry’s future, with 82% expecting life cover to make up a greater share of their work in the next five years, particularly due to the increased appetite among younger people.
Ms Cupitt has renewed calls for the government to introduce a new class of adviser providing limited guidance on life products, describing the change as a “win-win for all Australians by increasing access to advice, while providing a clear pathway for those looking to enter the advice industry”.