‘Money, Well-being and the Role of Financial Advice’ May 2016, AFA, TAL and Beddoes Institute

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This white paper provides evidence of the significant positive contribution that financial advisers make to the overall health and well-being of the Australian community and specifically identifies the differing needs of advice clients across both genders and generations. It is now clear that financial advice is important to the overall wealth, and health, of the nation.  The age of a ‘one size fits all’ approach to financial advice has passed. The present and the future of great financial advice lies in tailoring both strategy and the style of approach to advice relationships to the clients’ own preferences which can be indicated by their age, life-stage and gender.  Through applying the findings of this research, advisers will discover new opportunities for growth that result from:

  • Stronger client advocacy and referrals;
  • ‘Stickier’ client relationships; and
  • Greater breadth in the services that clients ask them to provide.

Most importantly, as shown in this white paper, the men and women that financial advisers work with enjoy wide-ranging benefits from improved health to overall satisfaction with life that extend from achieving improved financial literacy

Table of Contents

Foreword 3
About the Authors 4
Executive Summary 5
Money, Well-Being and the Role of Advice 12
Background 12
The Impact of Financial Thinking on Health and Well-being 13
Financial Literacy and Perceived Ability 15
The Important Role of Financial Advice 16
Implications for Financial Advisers 18
Tailoring Advice to Men and Women 19
Introduction 19
Time to Engagement 20
The Advice Trigger and Services Used 21
Finding an Adviser 25
The Initial Search 25
Choosing an Adviser 28
Winning Business and Building Trust and Confidence 30
Winning Business 30
Building Trust and Confidence 32
Delivering Value 35
Actions and Behaviors that Drive Value 35
Key Drivers of Adviser Satisfaction 39
Conclusion 40
Money, Well-Being and the Role of Advice 40
Tailoring Advice to Men and Women 40
Implications 42
Data Sources 43
Respondent Profile 43
Research Design and Analysis Technique 43
About the AFA 44
About the Beddoes Institute 44