Advice worth more than it costs
Written on the 19 October 2017 by Jassmyn Goh
A young family could be $240,000 better off at retirement if they receive financial advice, according to Sunsuper.
Sunsuper commissioned CoreData for its 'Value of Advice Report' that found that a 34-year-old Australian couple who received advice could maximise their money to pay for six additional years of private education for two children, 32 years of trauma cover, and a family holiday every year until retirement.
The report also found that 75 per cent of surveyed Australians who received advice believed advice was worth more than it costed.
"Clearly those who are currently advised think financial advice is 'worth it' - for their lifestyle, financial security, and peace of mind," the report said.
Of those who had not received financial advice, 42 per cent believed they would reply on the Age Pension, and 16 per cent believed they would have a good standard of living in retirement.
Sunsuper head of advice and retail distribution, Anne Fuchs, said the research validated the value of services financial advisers provided to Australian in helping them achieve their financial goals and retirement dreams.
"Most Australians have a pretty good idea of the lifestyle they want to live now and in retirement. But a lack of financial literacy could be blamed for what people believe they can achieve and what their actual financial situation will be in the future," she said.
"We also looked at the affordability of trauma cover because we understand that added financial security is important for many families should they become seriously unwell - especially when by 2020 it's estimated that there will be 150,000 new cases of cancer diagnosed in Australia.
"The modelling found that with advice the couple in their 30s could afford trauma cover for 32 years and the 50-year-old couple could enjoy 10 years of cover."
The report also found that of those who received financial advice, 93 per cent were sure they could fund three months out of work (compared to 77 per cent of unadvised), 84 per cent could always pay off their credit card each month (compared to 60 per cent), and seven per cent believed they would need to rely on the Age pension in retirement.Original article: http://www.moneymanagement.com.au/news/financial-planning/advice-worth-more-it-costs
Author: Jassmyn Goh