In this guide
With household budgets remaining under constant pressure, many of us are feeling the pinch.
In this environment, paying the mortgage or rent and daily living expenses are often given priority, and the idea of paying for financial advice may seem like an unnecessary cost. But the cost of not getting advice may be greater – both in financial terms and for your peace of mind.
This is especially true when it comes to planning your retirement, with plenty of research showing there are real, measurable benefits from talking to an expert.
Anxiety about retirement
According to new research by Vanguard Australia, 46% of Australians have no plan for how they will prepare financially for their retirement. Not only do they feel financially stretched, but close to 50% of pre-retirees worry they will not have enough to sustain the lifestyle they want in retirement.
The latest Financial Wellness research by AMP found 54% of respondents were never or rarely putting extra money away for retirement and 62% never or only occasionally planned ahead for their financial future.
Far more Australians (33%) are reaching out for help and advice about managing their mortgages and strategies to mitigate cost-of-living pressures than for help planning their retirement (25%) or getting the best from their super (24%).
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In fact, AMP’s research found 32% of Australians had never sought advice or support when it came to making important financial decisions. And those currently feeling financially stressed were even less likely to have done so (35%).
Of the survey respondents who had sought advice, those in a less financially secure position were less likely to have spoken to a professional adviser such as a financial planner (6%) or a super fund (11%).
Who gets financial advice about retirement?
When you’re busy working, retirement dreams can feel like a pleasant escape. Research shows, though, that few people create a plan to get there or think much about how they’ll manage their finances once they retire.
Good quality information and planning are well recognised as playing an important role in achieving a better retirement outcome, but a survey by the Association of Superannuation Funds of Australia (ASFA) found that around half of all adults had not consulted any sources of information in regard to their retirement. For those aged 65 plus, only around 40% had sought out any source of retirement information.
This echoes the findings of a 2025 report by National Seniors Australia (NSA), which found that among older age groups aged 67 plus, financial advice was only a priority for around 10% of fund members with a super balance of up to $200,000. For younger respondents (aged 50–66), financial advice was a priority for 13.5% of respondents. NSA has long argued that many pre-retirees and retirees fail to obtain financial advice due to the complexity of financial issues and financial jargon, together with concerns about the potential cost of advice. A separate NSA study found the main barrier to seeking financial advice was cost (32% of respondents), while lack of trust in advisers was also a key factor (29%).
Your finances: How much can advice help?
When it comes to your retirement finances, several research studies have investigated whether there are measurable benefits from getting professional advice from a financial planner.
Ongoing US research by Morningstar and Vanguard calculates that a good planner can increase your wealth – or save you from losing – roughly 2% to 5% per year.
Results of research into the value of financial advice
| Studies on the value of financial advice | Morningstar | Vanguard |
|---|---|---|
| Portfolio construction | ||
| Asset allocation | 0.45% | – |
| Low-cost/high-quality investments | 0.33% | 0.50% |
| Asset location | – | 0.30% |
| Tax-aware investing | – | – |
| Subtotal | 0.78% | 0.80% |
| Planning/implementation | ||
| Ongoing rebalancing | – | 0.12% |
| Tax-loss harvesting | – | 1.50% |
| Financial planning | 0.82% | 0.50% |
| Subtotal | 0.82% | 2.12% |
| Behavioural coaching | ||
| Sticking to the financial plan/portfolio tied to plan | 1.00% | 2.00% |
| Total estimated adviser value added (return per year) | 2.60% | 4.92% |
Source: Morningstar.
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Find out moreAlthough a 2% gain may not sound large in a single year, compounded over 30 years, it can make a huge difference. For example, a hypothetical $100,000 investment portfolio earning 6% versus 8% annually creates only a small difference in return over the first few years. But after 30 years, that 2% difference grows to more than $400,000.
Additional value also comes from your adviser helping you make good decisions in relation to your savings and remaining invested during market volatility. Advice about tax-effective strategies and estate planning also adds value.
Behavioural coaching, portfolio construction advice, cost-effective implementation and regular rebalancing of your portfolio also make valuable contributions to improving your overall return.
According to research by Russell Investments in 2025, the estimated total value added by professional advice is 5.6%. This added value is derived from five separate components expressed as incremental percentage returns, or wealth growth, each year.
| Component | Description | Value (% p.a.) |
|---|---|---|
| A | Asset allocation | 1.3% |
| B | Behavioural coaching | 3.1% |
| C | Choices and trade-offs | 1.2% |
| E | Expertise | Priceless |
| T | Tax-savvy planning | Variable |
| Estimated total value added by advice | 5.6% and over | |
Source: Russell Investments and AdviserVoice.
Your emotional wellbeing: How advice can help
Studies indicate that personal finance is one of the main sources of stress for Australians of all ages.
AMP Financial Wellness research found Australians are currently experiencing high levels of ongoing financial stress, with 66% reporting they felt financially stressed, either mildly, moderately or severely. Just 34% of Australians feel financially secure.
This anxiety has also spread to older Australians, with 40% of those retired reporting they did not feel financially secure.
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In the pre-retirement group, many (close to 50%) worry they will not have enough to sustain the lifestyle they are seeking in retirement. This concern continues into retirement, with fear of running out (FORO) of savings becoming a growing concern, even if they feel financially secure in the short term.
Seeking financial advice can be one way to quell these fears.
AMP’s research found respondents who had engaged a financial planner in the past 12 months were less likely to be experiencing moderate to severe stress levels and felt more capable of handling financial stress.
Financial advice can be really valuable when it comes to both your financial position and your emotional wellbeing, according to the Financial Advice Association Australia’s (FAAA) Value of Advice Index study. The study found 93% of advised Australians said they were tangibly better off because of their adviser, with 64% also reporting this professional support had a positive impact on their mental health.
Australians who have a financial adviser are markedly more confident in their financial outlook, the FAAA’s study noted. This was despite respondents facing the continuing cost-of-living crisis and financial uncertainty due to global geopolitical tensions.
Value of advice for retirement
For most people, financial security brings peace of mind and has a positive effect on their emotional wellbeing. This is particularly the case in the lead up to retirement.
An international study by the International Longevity Centre UK found people who receive advice are more confident, worry less and are better prepared for their retirement than those who do not take advice. The report noted that, given the increased responsibility now placed on individuals to plan for their own future in an uncertain environment, financial advice had never been more important.
The FAAA study backed this up, finding that 88% of advised Australians surveyed felt they were on track to have enough money to last their retirement, compared to only 62% of those who were unadvised.
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Find out moreThe Vanguard How Australia Retires report also highlights the value of financial advice when it comes to your retirement. It found 40% of Australians who had previously met with a financial adviser said they were very or extremely confident about funding their desired lifestyle in retirement – nearly double the level of those who had never engaged with an adviser (22%).
Other research by Vanguard found professional advice delivered both significant peace of mind and time savings to those receiving it, helping them feel more confident, supported and in control. The study found that advised investors were roughly half as likely (14%) as self-directed ones (27%) to experience high levels of financial stress.
Advised clients also reported greater peace of mind (86%), compared with those managing their finances on their own. The advised group also believed (76%) that professional advice saved them a median of two hours per week in terms of the time they needed to spend thinking about and dealing with their finances.
Reducing the retirement blues
Surprisingly, many pre-retirees feel unenthusiastic about the prospect of leaving the workforce and this can continue into their retirement. Vanguard’s study found 57% of working-age Australians have a negative sentiment towards retirement, with 35% of those actually in retirement holding similar attitudes.
One way to overcome the retirement blues is to seek advice. It seems pre-retirement advice or training programs do more than just make you feel financially prepared. They also help you adjust to your new lifestyle and feel more positive about what lies ahead.
In Michael Longhurst’s book Enjoying Retirement, he points out that people who seek advice or training before they retire experience significantly lower levels of depression in retirement than those who receive none.
Longhurst’s research also found that receiving pre-retirement education was associated with significantly more positive attitudes to life and greater retirement satisfaction.
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