At a media briefing in Sydney on Wednesday, the Financial Advice Association Australia (FAAA) introduced the latest Value of Advice Index, based on consumer research by independent firm MYMAVINS. This index examines responses from Australians who work with a financial adviser, those who do not, and specifically those who work with a Certified Financial Planner (CFP), across areas like quality of life, financial confidence, financial satisfaction, and their experience with their adviser.
The index scores responses on a 0 to 100 scale, with findings indicating that advised Australians report higher quality of life, financial confidence, and satisfaction compared to those without advisers.
FAAA Chair David Sharpe emphasized the study’s findings: “The FAAA Value of Advice Consumer Research clearly illustrates the connection between quality financial advice and improved quality of life with reduced financial stress.”
The study’s timing is notable, as many Australians are facing cost-of-living pressures. Sharpe added, “It’s encouraging that those with financial advisers feel more secure and equipped to handle today’s challenges.”
For Australians working with CFPs, the index reflects even stronger positive responses:
Quality of Life: Unadvised respondents rated 62, non-CFP advised clients rated 71, and CFP-advised clients rated 77.
Financial Confidence and Satisfaction: Unadvised respondents scored 57 and 55, respectively, while advised clients rated 70 and 69. CFP clients scored 75 for both.
Experience with Adviser: CFP clients rated their experience at 84, compared to 74 for non-CFP clients.
“The ‘professional delta’ we see for CFP professionals is notable,” Sharpe noted, highlighting the rigorous training CFPs undergo, which has continued to be demanding.
Advised clients, particularly those with CFPs, have shown marked improvements in financial confidence (+14 for CFPs, +10 for other advisers) and financial satisfaction (+15 for CFPs, +11 for other advisers) since last year. In contrast, scores for the unadvised have remained relatively stagnant, between 51 and 63, notably lower than those of clients working with financial advisers.
Trust in financial advisers has also reached a record high, with 94% of clients expressing trust in their adviser’s commitment to acting in their best interests. Additionally, 94% reported that their adviser helps them make optimal financial decisions, and 93% indicated their adviser aids in managing financial risks, with services meeting client needs comprehensively.
Rick Maggi CFP, Financial Advisor (Perth)