The growing pool of superannuation means there has never been a better time to be a financial adviser, according to a new industry white paper.
With super assets projected to hit $9.5 trillion by 2035, ClearView believes this represents an unprecedented opportunity for advisers as the average super balance is expected to hit $471,000 in the same period.
As a result, the average Australian would more than likely be able to afford advice, leading Clearview to surmise that demand for advice will skyrocket at a time of low supply.
NMG Consulting, the group providing the research for ClearView, predicts Australia will need 29,400 advisers by 2022 to cater to Baby Boomers. According to Rainmaker data, as at October 2018 there was 24,889 advisers on ASIC's Financial Adviser Register.
With widespread predictions that up to 50% of existing advisers will exit the industry as a result of new education standards, the inability to meet this demand compounds.
However, ClearView believes established advice practices will prosper with the only issue being whether prospective clients are willing to pay a fair price for services.
Despite the Royal Commission spurring drops in investment, superannuation and platform administration fees, the cost of advice is likely to remain steady.
ClearView is urging advice firms to boost their fee income and expand the scope of their advice to combat pressures put upon them by regulatory reforms such as the Life Insurance Framework.
"This is doubly important because it's only a matter of time before there are renewed calls to ban insurance commissions altogether," the paper reads.
"Current disruption and change is an opportunity for advisers to refresh their business models including their client acquisition strategy, pricing and ongoing client engagement."
By Jamie Williamson
29 November 2018