Mind the trust gap

Australians are suspicious of financial advice, writes Sophie Elsworth

A MAJORITY of Australians have no one they trust to give them sound financial advice, alarming new figures reveal.

This comes as the financial services’ royal commission has made many unsure about information provided by banks or advisers.

A study commissioned by NGS Super, which has 95,000 members, revealed 56 per cent of working Aussies had no trustworthy person to turn to for financial information.

And of those, 34 per cent said they wish they had someone who could help advise them on their finances and investing decisions.

NGS Super’s acting chief executive officer Laura Wright has urged fund members to seek any free information available to them to help get their finances on track.

“Superannuation can be a bit tricky and if you don’t seek advice you may be limiting your retirement outcome,’’ she warned. “What is a concern of people who got advice is about 19 per cent of these people didn’t trust (that) advice.”

Ms Wright encouraged people to try to obtain information that would boost their own financial understanding.

“There’s so much information available that costs people nothing and it’s easy for people to use,” Ms Wright said.

“You don’t have to make an appointment with a financial planner, you can go online and use the tools which nearly all super funds have or you can get on the phone.” ASIC’s MoneySmart website provides free, simplified information to Aussies on financial matters. The Association of Superannuation Funds of Australia’s chief executive officer, Dr Martin Fahy, is concerned that Australians are still not engaged with their financial affairs. “The first place for people to start with their superannuation is to ring their fund,’’ he said. “They will be able to provide them with general information on their fund and how it’s invested and performing.”

Super funds offer free general advice, but also more specialised advice for a fee.

Some funds have their own financial advisers and planners, while smaller funds may refer members to somebody outside the fund.

Of those in the survey that said they had a trusted financial adviser — not necessarily a trained finance professional — 42 per cent said this was a family member while 18 per cent said it was a close friend.

Dr Fahy also encourages people to read the financial pages of newspapers to help boost their knowledge.