Attitudes towards Financial Planners. Factuality research

Transcription

1 Attitudes towards Financial Planners Factuality research October 2014

2 Main findings 2

3 Main findings v v v v v The image of financial planners remains problematic, with 27% expressing a positive opinion of them and 41% a negative opinion. A high 32% is unsure and they offer an opportunity for the industry to persuade them into the positive column. Those yet to make up their minds about financial planners include high proportions of younger people and women. At present, 36% indicate they either do or would use a financial planner and 46% say they would not. Including the unsures, the current potential market is 54%. Those who do or would use a financial planner include more women (38%) than men (35%) and 37% of people aged under 40, along with 44% of the university educated. It s important to note that the figure of 46% sounds worse than it is as it includes many people from low income groups who either couldn t afford or have less need to hire a financial planner. The importance of building the profession s image is made clear by the high correlation between opinion of financial planners and willingness to use one. Of people with a positive opinion of financial planners, 76% do or would use one compared to only 15% of those with a negative view of them. Undoubtedly, the preferred model of financial planner is an independent expert to whom you pay directly a fee for service 82% (of those who do or would use a financial planner) are comfortable with this and 61% of them would choose this type of financial planner first. The second most favourite model is for a financial planner to be an employee of a large institution that provides financial products 54% are comfortable with this and 23% would choose this type of financial planner first. v The least favoured model is payment by commission 36% are comfortable with this but only 13% indicate they would go to this type of financial planner first.

4 Results: charts and tables 4

5 Financial planners: image not good but many unsures create an opportunity Do you have a positive or negative opinion of financial planners? Segment Positive (%) Negative (%) Male 28% 48% 50% 45% 40% 35% 30% 27% 41% 32% Female 27% 34% Under 40 31% 29% % 47% 60 or over 29% 51% University educated 30% 49% 25% 20% Parents with dependent children 30% 38% 15% 10% 5% 0% Positive Negative Unsure Under 70K* 25% 40% Over $70K* 31% 45% Investment property Economically secure 41% 45% 36% 40% *Household income Economically insecure 20% 42%

6 Less than half say they would not use a financial planner; again, a large segment of unsures Would you consider using a financial planner at any time in the future? Please answer yes if you currently use one. Segment Yes (%) No (%) Male 35% 52% 50% 45% 46% Female 38% 41% Under 40 37% 38% 40% 35% 36% % 50% 60 or over 41% 52% 30% 25% 20% 15% 10% 5% 0% 17% Yes No Unsure University educated Parents with dependent children 44% 42% 39% 40% Under 70K* 32% 50% Over $70K* 42% 43% Investment property Economically secure 51% 44% 43% 43% *Household income Economically insecure 31% 50%

7 Willingness to use a financial planner correlates strongly with opinion of them Would you consider using a financial planner at any time in the future? Please answer yes if you currently use one. 80% 70% 60% 50% 40% 30% 76% 75% Responses of people with a positive opinion of financial planners are in blue; those with a negative view of financial planners are in red 20% 15% 17% 10% 7% 9% 0% Yes No Unsure Do you have a positive or negative opinion of financial planners?

8 Most would prefer to pay a fee for service; commissions less popular [Asked of the 36% who said they would use a financial planner]* Are you comfortable using each of the following types of financial planner? Yes, comfortable No, not comfortable Unsure An independent financial planner to whom you would directly pay a fee for service 82% 12% 6% Uni educated 87% Inv property 85% Under 30s 85% A financial planner who is an employee of a large ins8tu8on that provides investment products 54% 33% 13% Under 40s 58% Under 70K 55% A financial planner who receives a commission from ins8tu8ons he or she refers you to. 36% 52% 12% Under 40s 44% Uni educated 32% *Sample base 367, so notes in right hand boxes are indicative only

9 Majority would prefer to pay an independent financial planner [Asked of the 36% who said they would use a financial planner]* Which one would you go to first? 70% 60% 61% 50% 40% 30% 23% 20% 13% 10% 4% 0% An independent financial planner to whom you would directly pay a fee for service A financial planner who receives a commission from institutions he or she refers you to. A financial planner who is an employee of a large institution that provides investment products Unsure *Sample base 367

10 Methodology n 1,000 interviews; nationally representative sample interviewed online n Age: 18+ n Fieldwork: 3 rd to 8 th October 2013 n n n n Data is weighted so the sample matches ABS census data to ensure a nationally representative sample Online panel members are primarily recruited offline and by invitation only, ruling out self-selection issues associated with some online methodologies, such as polls on the issue of the day commonly run by newspapers (where, for example, News Limited papers will obtain vastly different results from Fairfax newspapers on the same issue). Maximum margin of error at 95% confidence level: ±3.08% (n=1,000). Some questions, where marked, have only been asked of people who gave a specific response to a previous question. In these instances and when the sample is divided into demographic or attitudinal subgroups, results should be considered to be indicative only. Some rows or columns may not total 100% due to rounding errors.