Retiree Surge to Drive Demand for Financial Advisers in Australia

0

Ben Marshan of Marshan Consulting has likened the upcoming situation to a demographic "tsunami." He projects the retiree population will expand from 7.8 million to 16 million, increasing by 105 per cent. Notably, the fastest growth will be among those aged 65–74, projected to rise by 108 per cent, and those over 75, expected to surge by 164 per cent. These groups will reach critical stages where making informed financial decisions becomes crucial.

The current landscape already shows demand outpacing supply. Only 1.2 million Australians aged 55 and above currently receive financial advice, while the average adviser handles 100 to 130 clients, pushing the capacity limits of the profession. Simultaneously, the adviser workforce is aging, with half likely to retire within 15 years, according to Nathan Fradley from Fradley Advice.

Fradley suggests that bridging the staffing gap cannot be achieved merely by relying on new graduates or career changers progressing through the National Competency Assessment (NCA) role. Both Marshan and Fradley identify skilled migration as a critical solution to meet growing demand, with Marshan noting the inclusion of advisers in the government’s Skills Priority List and Core Skills Occupation List as a significant step forward.

The Financial Advice Association Australia proposes awarding five points on the skilled migration test for mandatory professional year completion, aiming to attract overseas talent. Migrant advisers bring valuable experience, including investment strategy and client engagement skills, and can serve Australia’s diverse populations better, particularly if multilingual.

Pedro Marin of Marin Wealth, who emigrated from Venezuela, underscores the gap in services available to non-English speaking Australians due to a shortage of bilingual advisers. Despite the potential advantages, the path to bringing international talent to Australia involves high costs and lengthy training times, dissuading many firms from considering overseas recruitment.

Marshan points out that nearly 47 per cent of firms are reluctant to employ international workers due to the associated expenses and administrative demands. Fradley concurs that the current educational standards in Australia pose challenges for large-scale implementation of skilled migration, suggesting the need for regulatory adjustments. There is a call to create pathways that preserve professional integrity while recognising international qualifications and experience.

Published:Wednesday, 10th Sep 2025
Source: Paige Estritori

Share this news item:

Finance News

Clear

Commonwealth Bank Challenges RBA's Card Fee Reform

12 Sep 2025: Paige Estritori

Australia’s leading financial institution, the Commonwealth Bank of Australia, has openly criticised the Reserve Bank of Australia (RBA) for its calculations related to a proposed reduction in debit and credit card transaction fees. The RBA suggested that the reform would save Australian businesses $1.2 billion annually and benefit the majority of companies, a claim that the Commonwealth Bank strongly disputes. - read more

Ongoing Consumer Spending Surge Threatens Future Interest Rate Cuts

11 Sep 2025: Paige Estritori

Amid a period of robust consumer spending, Australia's mortgage holders may face limited future interest-rate cuts. The Commonwealth Bank has observed Australians increasing their spending over the last six months, spurred by rising incomes, a robust job market, and previously lowered interest rates. - read more

CSLR Funding Concerns as Special Levy Decision Remains Pending

11 Sep 2025: Paige Estritori

The Compensation Scheme of Last Resort (CSLR) recently highlighted potential delays in compensation payments due to insufficient special levy funds. In July, the CSLR's proposed FY2025–26 levy plan allocated $67.29 million for financial advisers, surpassing the $20 million limit set for the subsector. This shortfall of $47.29 million prompted the Treasury to initiate a consultation in August to determine funding solutions for the excess levy. - read more

Retiree Surge to Drive Demand for Financial Advisers in Australia

10 Sep 2025: Paige Estritori

A recent study by Adviser Ratings, as outlined in the 2025 Australian Financial Advice Landscape Report, indicates that the number of financial advisers in Australia will need to increase significantly. From the present count of 15,500 advisers, the industry is expected to require more than 50,000 over the next thirty years to cater to a growing retiree population. - read more

FAAA Advocates Balance in Non-Compete Reform for the Financial Sector

10 Sep 2025: Paige Estritori

The Australian government is examining potential reforms to non-compete clauses in employment contracts, driven by concerns that current laws may impede workers from advancing their careers and, in turn, hinder economic growth. In this context, the Financial Advice Association Australia (FAAA) has raised concerns about these reforms, urging that the proposed changes should balance the interests of both employees and employers. - read more

Aussie Incomes Lag in OECD Amid Productivity Concerns

09 Sep 2025: Paige Estritori

Australia has recorded a sluggish rise in real per capita household disposable income over the past decade, making it the slowest growth among major English-speaking countries. According to OECD data, from Q1 2015 to Q1 2025, Australian incomes only increased by 3.5%, starkly contrasted with Canada's 8.9%, the United States' 20.6%, and the United Kingdom's 8%. The OECD average during this period was 18.7%, further highlighting Australia's economic challenges. - read more

Click for more Finance News