Research shows generational advice gap worsened by pandemic

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There is an increasingly large gap between what consumers required from financial advice, and what they want now, according to recent KPMG research.

A survey conducted on over 1500 consumers in May looked at experiences of superannuation, financial advice and life insurance. Eighty per cent of consumers now want digital advice, not face-to-face offerings, with the pandemic possibly fast-forwarding a generational shift, KPMG says.

Key findings include:

  • Most under-40s are in favour of digital financial advice

  • Just under 60 per cent of those want the advice from their superannuation fund

  • Around a third said their fund should improve its services in regards to education and advice

  • Thirty-six per cent of respondents said their super fund already provides advisory services and they had used them recently

  • Sixty per cent said they need to review their investments to better manage risk

  • Just over 40 per cent said their retirement and financial goals had been impacted by the pandemic, with future consequences likely

  • About half of those surveyed thought their financial position had declined during the pandemic

  • Almost 70 per cent had reduced overall and discretionary spending

  • Over two-thirds were either confident or neutral as to the prospects of a recovery over the coming six months

  • Almost two-thirds expect to be able to deal with their superannuation fund wholly digitally

  • Most survey respondents said financial advice from their fund was important, but only a third were willing to pay for it

Read Post-COVID-19: Insurance and wealth sector consumer trends in full