The majority of financial advisers in Australia are thinking about retiring from the sector this year.
According to a survey by Australian publication IFA, as many as 60.3% of planners have claimed they are considering it, with only 39.7% stating they would keep working in the industry.
The research polled 500 financial advisers based in country.
Local advisory firms, including Synchron and Lifespan Financial Planning, reported significant drops in their financial adviser numbers in 2019, and they expect that this trend will continue.
Even though there are many people entering the sector, the numbers are just not enough to make up for those departing.
Additionally, the aftermath of the Haynes’ Royal Commision into banking, superannuation and financial services, plus higher education standards for advisers and soaring professional indemnity insurance premiums have made the situation more difficult for the sector.
The phenomenon has been true to many other countries, including the UK.
According to the 2019 Heath report, only 6% of UK financial advisers are aged 35 or under; and the fact that by 2024 around 7,000 planners are set to leave the sector doesn’t help ether.
Some industry players have also pointed out that financial advice isn’t always a person’s first career choice, and that industry professionals should try and generate interest in people to become a financial adviser.