There are two intergenerational transfers: the wealth itself and the responsibility for managing it.

Picture this: an Enduring Power of Attorney (EPOA) has sat in a filing cabinet for years. Then a sudden health event means an adult daughter is called on to act as her mother’s attorney. The legal authority is all in order, but underneath it remains a mystery the daughter must now solve. Where are the investments held? How does the family trust operate? Which arrangements are meant to sit outside the estate?

Nobody has been deliberately careless. Indeed, the mother always planned for someone else to take over. She just didn’t plan for the administrative complexity sitting underneath that decision, or what her daughter would actually need to know.

Wealth-transfer planning tends to concentrate on what happens after death: the will, beneficiary nominations and the tax treatment of the eventual transfer. Less attention goes to the point at which someone else starts managing the client’s affairs while they are still alive. And yet this increasingly common scenario is arguably more disruptive.

In reality, there are two intergenerational transfers: the wealth itself and the responsibility for managing it. Responsibility may pass long before the money does.

This article examines why more families are likely to face this earlier handover and what advisers can do to prepare the person taking responsibility. It also considers how simplifying wealth transfer structures, including through an investment bond where appropriate, may make a financial plan easier for someone else to administer.

A growing readiness gap?

Australia’s ageing population – and the associated increase in the prevalence of dementia – will make the early transfer of financial responsibility an increasingly common part of family life.

The 2026 Intergenerational Report projects that the number of Australians aged 65 and over will almost double over the next 40 years^[1]. The number aged 85 and over, the age group most likely to need assistance managing their affairs, is expected to triple over the same period. At the same time, the number of Australians living with dementia is expected to more than double, from 446,500 in 2026 to over 1 million by 2065^[2].

Financial enduring powers of attorney remain relatively uncommon across the adult population, with one survey^[3] finding that 9% of Australian adults currently held one. However, their prevalence rises substantially with age, with separate research^[4] finding the proportion of people with an active EPOA increased from 33% among those aged 65 to 69, to 48% among those aged 75 to 79 and 61% among those aged 85 and over.

The decision to establish an EPOA is also sometimes prompted by a change in circumstances. Among those surveyed who had established a financial EPOA, 26% did so after a professional suggested it, while 19% acted after a medical issue arose^[5].

Combined with Australia’s ageing population, these findings suggest that more families will face a transfer of financial responsibility while the older generation is still alive. Yet having the legal authority in place does not necessarily prepare someone to exercise it. Only one-quarter of people actively serving as appointed decision-makers said they had understood their responsibilities very well when they began^[6].

An EPOA identifies who may act, but it does not tell that person where the assets are held or why particular structures were chosen. Nor does it explain what must be done to keep those arrangements operating.

Generation Life’s research – Funding a Dignified Retirement – reveals a similar gap in family preparation. Although 65% of affluent and high-net-worth Australians intended to involve their children in discussions with their financial adviser, most advisers surveyed reported that fewer than 10% of clients actually did^[7].

The result may be a transfer that is legally valid but practically unprepared. As more family members assume financial responsibility for ageing parents, the adviser’s role is evolving beyond ensuring the appropriate legal documents are in place. Increasingly that role extends to making a wealth transfer plan intelligible to someone other than the client and asking whether its administrative complexity still serves a worthwhile purpose.

Administrative complexity is a planning risk

Administrative simplicity is not merely a matter of convenience. It affects the ability of a financial plan to continue operating when the person who designed and managed it is no longer able to do so.

Complex structures often have a valid purpose. A trust or company may provide asset protection or tax advantages or governance benefits. But the question is whether those benefits continue to justify the associated workload for whoever eventually manages that structure.

For a discretionary trust, much of the administrative work recurs each year. Where the trust has income and beneficiaries are to be assessed on it, the trustee generally needs to make and document valid distribution resolutions by 30 June, or earlier if the deed requires. The trustee must also attend to the trust’s tax return and report the beneficiaries’ respective shares of income.

Tax administration is only part of the responsibility.

A successor trustee must understand the deed, including the class of beneficiaries, the scope of the trustee’s discretion and any default provisions that apply when a decision is not made. A change of trustee or of the directors controlling a corporate trustee may require formal appointments and consequential changes to asset records. The EPOA may give an attorney authority to act for the client, but it does not by itself explain or complete those trust-governance steps.

Complexity is already affecting some clients’ ability to manage their wealth. Generation Life’s Navigating Uncertainty Report found that 23% of high-net-worth Australians said that financial management was becoming too complicated, and this was a barrier to achieving their wealth goals. Among those using an adviser, 20% said they had sought advice because they could no longer manage their own assets or financial affairs^[8].

A family trust that worked well while the client was actively making every decision may look very different to an adult child stepping in during a health crisis. The attorney may need professional help simply to continue the existing arrangements.

The test is therefore forward-looking: does a structure still serve a purpose sufficient to justify its administrative burden, and could someone other than the client understand and operate it under pressure? Complexity that depends on knowledge held only in the client’s head creates a planning risk of its own.

Simplifying the plan without dismantling it

Simplification does not require every trust to be wound up or an entire estate reorganised.

A trust may remain appropriate where asset protection or continuing trustee control is central to the client’s purpose. But if the objective is simply to earmark a defined amount for one recipient and determine when it will be received, an arrangement requiring annual tax administration and continuing trustee decisions may be more elaborate than necessary.

Consideration should thus be given to whether a more self-contained structure could achieve that narrower objective — and the comparison between structures should broaden from purely financial factors to include the amount of work created for others.

An investment bond is one option that may warrant consideration where the intended transfer is clearly defined and continuing trustee control is not required.

Case study: Margo’s planned transfer

Generation Life’s Estate Planning Guide references the example of Margo, aged 81, who wants to provide $100,000 for her 16-year-old grandson but is concerned he is too young to manage an unrestricted lump sum^[9].

Margo establishes a $100,000 investment bond with a future transfer arrangement under which ownership passes to her grandson when she dies. At that point, a regular income stream of $1,500 a month begins and continues until the funds are depleted. Because the transfer occurs under the bond’s terms rather than through Margo’s will, the investment does not form part of her estate for distribution.

The example illustrates simplification at both ends of the handover.

While Margo is alive, the bond remains a single investment held in her name. If an attorney later manages her affairs, they would need to locate the bond, establish their authority with the provider and understand its purpose. After Margo’s death, the transfer and payment instructions are already built into the arrangement. The bond does not need to be distributed through her estate or transferred into a testamentary trust for a trustee to administer.

The attorney would still need to understand that the grandson is an intended future recipient – not the present owner of the money – and that Margo may need to draw on the bond for her own care or living costs, which would reduce the eventual amount transferred. Recording the purpose of the investment and the provider’s requirements makes that distinction clear.

Where investment bonds may simplify the handover

The tax treatment of the bond adds a further layer of simplification while Margo is still alive: earnings within it generally don’t need to appear in the owner’s personal tax return, and switching between investment options inside the bond generally doesn’t trigger a personal capital gains tax event. For someone managing another person’s affairs, these features mean two less tax questions to potentially resolve.

An investment bond may also allow the owner to nominate a beneficiary, a feature that operates differently from Margo’s future transfer arrangement. Rather than ownership of the continuing bond passing to the recipient, the bond proceeds are paid directly to the nominated beneficiary on death. This can simplify the transfer because the proceeds do not need to be collected and distributed by the executor as part of the estate administration.

Of course, none of this makes a bond a universal substitute for other structures.

A trust can hold a broader range of assets, including property and business interests, and lets a trustee exercise ongoing discretion over distributions as family circumstances change over years or decades, something a bond’s future transfer or beneficiary nomination features aren’t designed to do. And the suitability of a bond will still depend on the client’s tax position, investment preferences, fees and liquidity needs. The ten-year withdrawal rule and the 125% contribution rule also need to be considered. Early access can change the tax outcome and reduce the amount eventually available to the intended recipient.

Making the legal authority usable – a practical guide

Once the structure of the plan has been reviewed, the next task is to connect the legal authority with the information required to use it.

While advisers cannot provide legal advice about whether an EPOA is valid or how it should be drafted, they are well placed to identify the practical gaps that sit beneath it – cases where the authority exists but the person holding it lacks what they need to act on it – and to coordinate with the client’s solicitor where the gap is a legal one.

A financial handover review could address four areas:

• Authority
  Confirm what financial decisions the attorney may make, when the authority becomes operational and where the original or certified documents are held. There are currently no nationally standardised laws around EPOAs, and the terminology and scope of the appointment will depend on the relevant state or territory law and the document itself.
• Information
  Maintain a current record of assets, liabilities and professional contacts. Distinguish estate assets from investments governed by separate ownership or nomination arrangements, including superannuation death benefit nominations, and record any applicable expiry or review dates.
• Operation
  Record how relevant structures work and what additional appointments may be required. An EPOA holder, for example, does not automatically become a trustee of the client’s SMSF or a director of its corporate trustee. Rather, the legal personal representative must be formally appointed to the relevant position in accordance with the fund deed, company constitution and applicable law^[10]. Providers may also require their own forms and verification before accepting an attorney’s instructions. Digital information should be stored securely and be locatable without relying on the client’s passwords.
• Intention
  Explain why material arrangements exist. This can help the attorney preserve their purpose while responding to the client’s current needs, rather than treating earlier instructions as inflexible.

Family involvement can begin before an EPOA is activated. An adult child might attend an advice meeting while the parent continues making their own decisions. This does not authorise the child to issue instructions, but it can make a later transition less abrupt without the client surrendering control.

The plan should also recognise that an attorney’s authority generally ends at death, when responsibility for administering estate assets passes to the executor. The same family member may hold both roles, but the source of their authority changes. A clear record of which assets form part of the estate can reduce confusion at that point.

A handover review can form part of the regular advice process rather than waiting until entry into aged care or loss of capacity appears imminent. It should be revisited whenever there are changes in the client’s health or family circumstances, or in the nominated attorney’s ability and willingness to act in that role.

Conclusion – building a plan someone else can operate

Wealth-transfer planning cannot begin and end with what happens after death. As Australia’s population ages, more clients are likely to reach a point at which someone else must manage their financial affairs. Responsibility will increasingly change hands long before the wealth itself does.

An EPOA provides the legal authority for that transition, but it does not give the attorney the information needed to act, nor make a complex financial plan easier to operate. Advisers can help close that gap by preparing the future decision-maker and documenting how important arrangements work. They can also test whether the administration attached to each structure remains justified by the client’s objectives.

Simplification does not require every trust to be dismantled. A trust may remain appropriate where continuing control or trustee discretion is important. For a defined transfer, however, an investment bond may reduce the reporting required during the client’s lifetime and allow ownership or proceeds to pass outside the estate under instructions established in advance.

The practical test is whether the plan could continue to operate if the client could no longer manage it tomorrow. Addressing that question before a health event occurs can make the transfer of responsibility less disruptive and the eventual transfer of wealth more likely to work as intended.

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References:
[1] https://treasury.gov.au/publication/2026-intergenerational-report
[2] https://www.dementia.org.au/about-dementia/dementia-facts-and-figures
[3] https://humanrights.gov.au/__data/assets/file/0031/47299/Empowering_futures_report_2024_final.pdf
[4] https://aifs.gov.au/sites/default/files/publication-documents/2021_national_elder_abuse_prevalence_study_final_report_0.pdf
[5] https://humanrights.gov.au/__data/assets/file/0031/47299/Empowering_futures_report_2024_final.pdf
[6] Ibid.
[7] https://www.investmentmagazine.com.au/wp-content/uploads/2026/08/Generation-Life-and-CoreData-Reimagining-Legacy.pdf
[8]https://generationlife-endpoint.azureedge.net/live/attachments/cmmsvqf0h0qzn0qmowczkh0cu-gl-navigatinguncertaintyreportadviser-final.pdf
[9] Generation Life, Estate Planning Guide, 2025.
[10]https://media.fsadvice.com.au/prod/media/library/FS_Advice/FS_Advice_2025/FS_Advice_Will_ethics_be_the_death_of_you-0001.pdf

Financial security has overtaken retirement planning as the leading driver of advice, and competing financial goals are reshaping client conversations.

Introduction

As the advice profession continues to evolve, so too do client expectations and perceptions of the value of advice. Perhaps nothing sums up this shift as perfectly as this observation from an adviser interviewed for Russell Investments’ 2026 Value of an Adviser research:

“Clients aren’t asking about performance. They’re asking, ‘Are we going to be okay?’ It’s not about the numbers. It’s about being that life coach, that behavioural coach.”^[1]

Any adviser can show a client how their portfolio performed, what tax was saved and whether they remain on track for retirement, and it can be tempting to revert to these more ‘functional’ metrics when articulating the value advice is delivering in exchange for a $5,000+ advice fee.

What is harder to show is the value of the panic sale avoided, or the family relationships saved. Yet it is these less visible outcomes that increasingly represent what clients seek most from their adviser.

Russell’s Value of an Adviser (VoA) study quantified this trend some time ago, its proprietary formula allocating a greater annual value to behavioural coaching (2.8% p.a.) than to asset allocation (1.5% p.a.) and tax planning (1.2% p.a.). The 2026 edition of their study goes even deeper, finding that reassurance about financial security has overtaken retirement planning as the leading reason advised clients seek advice.

The importance of confidence as an advice outcome is also increasing, a trend reinforced by research from both Russell – who found that client confidence in achieving goals more than doubled after receiving advice (83% v 41%) – and Generation Life, for whom a CoreData study found that ‘confidence in navigating the complexities of financial planning’ was the leading reason HNW Australians used an adviser, nominated by 40 per cent^[2].

But as valuable – and valued – as the instilling of confidence may be, the challenge for advisers is to make clear everything they have done to create it. Because while confidence may be intangible, it is not an accidental outcome – it is built by design through clarity, informed choices, and the advice that helps clients remain calm and committed in the face of volatile markets, legislative uncertainty, and changing personal circumstances.

This article focuses on the systemisation of confidence building. Drawing on Russell’s 2026 VoA study and other industry and academic sources, it examines the role confidence plays in advice and sets out a practical framework for building it and making it more visible to clients.

From retirement planning to reassurance – the evolving drivers of advice demand

Retirement planning has traditionally been one of the strongest triggers for seeking advice, and one of the scenarios where the outcomes sought by the client, and the value added by the advice, were most obvious.

As recently as 2025, 90 per cent of advisers surveyed by Russell identified retirement planning as a primary driver of advice demand^[3], and it is easy to understand why. Australia’s retirement income system requires clients to navigate complex and changing investment, superannuation, tax, income and social security settings, and few retirees have the confidence and knowledge to attempt this journey without expert help.

But the nature of that demand is changing. In Russell’s 2026 research, reassurance about financial security overtook retirement planning as the leading reason advised clients sought advice, nominated by 43 per cent and 38 per cent respectively.

This shift is also evident in what advisers are experiencing.

While retirement planning remained a leading driver of advice, its prominence slipped, down from 90 to 73 per cent. Separately, the proportion of advisers identifying guidance around financial choices as a key demand driver rose from 28 per cent to 40 per cent, and one-third reported spending increasing amounts of time helping clients navigate complex decisions rather than optimising portfolios.

Part of that shift may reflect a change in who is walking through the door, not just what existing clients want. For younger clients – Millennials and Gen Z – retirement planning does not appear among the top three reasons to seek advice. Millennials are more likely to nominate navigating options and reassurance, while Gen Z clients are most likely to say they need help ‘simply knowing where to start’.

With younger, non-advised investors considerably more likely than Baby Boomers to say they are likely to consider using an adviser – 66 per cent of Gen Z and 59 per cent of Millennials, compared with 29 per cent of Baby Boomers – the profession’s client base may be changing both its expectations and, gradually, its composition. Both forces point in the same direction: fewer conversations built solely around a retirement destination, and more built around ongoing decisions.

Nor have conversations about investment performance ceased to matter. Clients expect advisers to provide sound investment and technical advice. What increasingly distinguishes a valued advice relationship, however, is the application of that expertise and guidance when clients face uncertainty and difficult decisions.

Reassurance in this context is not a promise that nothing will go wrong. It is confidence that the strategy has been carefully considered and is flexible enough to adapt to changing circumstances.

Giving clients a framework for trade-offs

The growing demand for reassurance reflects the growing complexity of the environment in which financial decisions are being made.

The increasingly common blended family and the sandwich generation are two socio-demographic trends that are reshaping the demand for advice. Throw in the complexities of intergenerational transfer – which is seeing the concept of the early inheritance become more common – and it is clear that many seeking advice are facing competing demands on their time and capital. Indeed, Russell found that competing financial goals increased from 23 per cent to 31 per cent as a reason advised clients sought advice, the largest movement recorded in the 2026 research.

The financial pressures on clients can be substantial.

Australian Seniors’ 2025 research^[4] found that ‘sandwiched’ caregivers provided an average of almost $1,500 a month to parents or in-laws and almost $1,300 to younger dependants. And this has a knock-on effect. Seventy per cent had already adjusted their retirement plans or expected to do so because of their caregiving responsibilities.

For clients in these circumstances, a technically sound recommendation is only part of the answer. Another is giving clients a framework for decision making in the face of competing demands, helping them to identify each obligation and to understand the consequences of giving one obligation precedence over another.

Helping a child purchase a home, for example, may mean saving less or accepting a lower level of retirement income. Meeting a parent’s aged care costs could require changes to investments or estate plans. Each option may be financially possible, but the appropriate choice will depend on the client’s resources, responsibilities and personal priorities.

The adviser is not the one who can decide which family obligation should matter most. But they can deliver value by creating a disciplined process through which the client can make that decision themselves.

By turning several competing and emotionally charged concerns into a structured set of choices, advice can help clients achieve clarity. That clarity provides a stronger basis for informed decisions and, in turn, for confidence that the resulting strategy reflects what matters most to the client.

Confidence as an outcome of advice

One of the clearest findings in the 2026 VoA study is the difference between how clients rate their confidence before and after receiving advice. Before advice, 41 per cent strongly agreed they were confident of achieving their financial goals. After receiving advice, that figure more than doubled, to 83 per cent.

The result does not mean every advised client will achieve every goal, nor does it provide an objective measure of financial capability. It does, however, indicate that clients associate advice with a much stronger belief that their financial objectives are achievable.

The FAAA’s 2025 Value of Advice Consumer Research^[5] provides further evidence of this nexus between advice and increased financial confidence. Its Financial Confidence Index, which measures expectations of financial security, ability to achieve goals and capacity to manage personal risk, recorded a score of 74 among advised Australians, compared with only 57 among those who were unadvised. The same research found that 98 per cent of advised clients believed their adviser had supported them to make the best possible financial decisions.

In academic research^[6], this is sometimes described as financial self-efficacy: an individual’s self-perceived capacity to manage their finances, and their confidence in doing so.

Confidence matters because a financial strategy can only deliver its intended benefits if the client understands it and is prepared to act on it. As financial adviser Scott Hammond explained in the Russell report:

“[Working with an adviser] increases clarity, increases capability, and that leads to increased confidence.”^[7]

His observation captures an important sequence. Advice creates confidence by helping clients understand their position and make informed decisions. Confidence is not an incidental emotional benefit accruing after the technical work is complete. It is one of the outcomes that advice should be designed to produce.

It is worth flagging an important distinction between confidence and overconfidence.

While confidence should be cultivated, overconfidence is a behavioural bias that can lead to wealth-destroying decisions, and advisers need to be able to recognise and counter it. The truism ‘a little knowledge is a dangerous thing’ can certainly rear its head in advice scenarios, especially in the era of AI-powered search, which has made everyone an ‘expert’.

As Morningstar decision science expert Ryan Murphy observed^[8], investors can become overly optimistic about their knowledge or judgement. The objective of advice is therefore not to make clients feel certain regardless of the evidence. It is to build grounded confidence based on clear information, and a realistic understanding of the risks and consequences attached to different choices.

In this sense, informed consent, while fundamentally a compliance obligation, is also a foundation of confidence.

Making invisible value visible through confidence

An earlier article in this series examined how much of the value advisers create can remain unseen, and how transparency and communication can make that value easier for clients to recognise^[9]. Russell’s 2026 report brings this idea to the foreground, making “invisible value” its central theme and identifying greater visibility as a strategic priority for advice businesses.

This is not a response to widespread client dissatisfaction. 90 per cent of advised clients describe their adviser as providing good or excellent value, up from 84 per cent in 2025, despite average annual fees rising from $4,572 to $5,235^[10]. The issue is that clients do not always recognise which aspects of advice have produced that value.

The largest perception gaps concern advice tailored to the client’s needs and values, the affordability of fees, and guidance through choices and trade-offs. For example, tailored advice saw a 6-point gap between client need and adviser delivery, with 36 per cent of clients identifying it as important, while 30 per cent believed their adviser was delivering it. Similarly, guidance through choices and trade-offs recorded a 4-point gap between importance and perceived performance.

Behavioural coaching provides the starkest example of misalignment.

Seventy-eight per cent of advisers strongly agreed that helping clients avoid costly mistakes during volatility was a benefit of advice – and various studies have quantified just how significant^[11] this value is – yet only 27 per cent of clients agreed. Advisers ranked it first; clients ranked it last.

This does not necessarily mean the coaching has failed, or that advisers are on a different planet to their clients. Effective mentoring and coaching may leave no visible outcome because the knee-jerk sale in a falling market never happened, the losses were never crystallised, and the poorly thought through idea was quietly shelved. The client benefits – sometimes enormously – from the decisions they were prevented from making, but no matter how many times they have been ‘talked down from the ledge’, they often forget the adviser’s role by the time of their next review.

Confidence can be similarly difficult to attribute. Clients may feel calmer and better equipped to act without consciously connecting those changes to the processes and conversations that produced them.

Making this value visible requires advisers to show the connection between their work and the client’s experience, and again, the legal obligations around compliant advice perform a double duty as a way of baking increased visibility into the advice process. Instead of reporting only what was recommended, advisers should explain which alternatives were considered and what risks were avoided.

This is not simply a way to justify fees. It helps clients participate more meaningfully in decisions and recognise that confidence is supported by an advice process, rather than arising by chance.

Systemising confidence in your advice

If confidence is an outcome of advice, then every step of the advice process should work towards building it. Visibly. This includes everything from the client discovery process, through to the design and presentation of recommendations, ongoing client communication, and regular reviews.

We are not talking about adding another layer of red tape or psychometric assessment. Rather, advisers should be more overtly uncovering what is creating uncertainty and barriers to confidence and then demonstrating the advice response.

Below is a rudimentary framework for systemising the building of confidence, so the process becomes repeatable and visible. These are largely steps advisers already follow every day. The challenge is to make them more visible to the client.

• Establish a confidence baseline
  Ask clients to rate their confidence in achieving a goal, then ask: “What would make you feel more confident?” The question often surfaces worries that a standard fact-find misses. This is simply a conversation prompt, not a formal measure.
• Identify the source of uncertainty
  Uncertainty can stem from different sources: naming those source(s) can clarify the nature of the response required.
• Show the decision pathway
  A compliant advice process involves explaining the alternatives considered and why the recommendation best fits the client’s goals and circumstances. This makes the options considered and rejected just as important. Taking clients through the judgement, not just the outcome, can make visible a lot of hard work that may otherwise be relegated in prominence.
• Stress-test the strategy visibly
  Modelling a market fall, legislative change or unexpected expense shows how the plan is built to respond. The goal is not to predict every event, but to show that responses are ready if conditions change.
• Keep a record of decisions and avoided risks
  A brief decision record, covering what was considered, what was advised and why, preserves value that might otherwise be forgotten by the next review. This could even include modelling the consequences of the panic sale, and the late re-entry into a recovering market.
• Agree on communication triggers
  The elevated market turbulence during 2026 has seen communication frequency increase. Russell’s study shows 67 per cent of clients now speaking with their adviser three or more times a year, up from 60 per cent in 2025¹². The FAAA also found that clients particularly value proactive contact during volatile markets¹³. More contact is not automatically valuable, so make sure contact is timely and purposeful. Advisers should also agree with clients which events warrant contact, and which channels they prefer.
• Revisit confidence at each review
  Return to the client’s earlier concerns: what has become clearer, what remains unresolved and whether new decisions have emerged. This connects any change in confidence to the advice delivered.

These practices make confidence more observable without reducing it to a single score. They also help clients see how advice has strengthened their ability to make informed choices and remain committed to an appropriate strategy.

Conclusion: confidence made visible

When clients ask, “Are we going to be okay?”, they are not necessarily asking their adviser to predict the future or guarantee an outcome. They want to know that their options have been properly considered and there is a plan for responding when circumstances change.

The answer advisers provide is not certainty, but preparedness. Investment performance and progress towards financial goals remain fundamental, but Russell’s findings suggest clients increasingly value the reassurance that allows them to make difficult decisions and remain committed to them.

Treating confidence as a deliberate advice outcome gives advisers a way to demonstrate this less visible contribution. The result is not a client who believes nothing can go wrong, but one who understands why a particular course has been chosen and feels equipped to respond when circumstances inevitably change.

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References:
[1] https://russellinvestments.com/content/ri/au/en-gb/financial-professional/tools-and-education/business-solutions/value-of-adviser.html
[2] https://generationlife-endpoint.azureedge.net/live/attachments/cmmsvqf0h0qzn0qmowczkh0cu-gl-navigatinguncertaintyreportadviser-final.pdf
[3] https://russellinvestments.com/content/ri/au/en-gb/financial-professional/tools-and-education/business-solutions/value-of-adviser.html
[4] https://www.seniors.com.au/documents/whitepaper-sandwich-generation-report-2025.pdf
[5] https://faaa.au/wp-content/uploads/2025/09/Value-of-Advice-2025.pdf
[6] https://files.eric.ed.gov/fulltext/EJ952966.pdf
[7] https://russellinvestments.com/content/ri/au/en-gb/financial-professional/tools-and-education/business-solutions/value-of-adviser.html
[8] https://rpc.cfainstitute.org/research/multimedia/2020/overconfidence-in-human-decision-making
[9] https://www.adviservoice.com.au/2025/12/cpd-transparency-and-communication-making-the-value-of-advice-visible/
[10]https://russellinvestments.com/content/ri/au/en-gb/financial-professional/tools-and-education/business-solutions/value-of-adviser.html
[11]https://spotlight.morningstarhub.com.au/coaching-risk-averse-investors-in-times-of-market-volatility/
[12] https://russellinvestments.com/content/ri/au/en-gb/financial-professional/tools-and-education/business-solutions/value-of-adviser.html
[13] https://faaa.au/wp-content/uploads/2025/09/Value-of-Advice-2025.pdf

Denis Orrock

High-net-worth Australians who receive financial advice are substantially more confident in their investments than those managing their wealth without an adviser, according to new research released by Praemium and CoreData.

The Rich Decisions research found 84% of high-net-worth (HNW) investors receiving ongoing advice are happy with their investments, compared with 64% of those who are not advised. Investors receiving one-off advice sit between the two groups, with 70% reporting that they are happy with their investments.

Trust appears central to that difference. Financial advisers and wealth managers rank as the most trusted financial professionals among HNW investors, with 65% expressing a high level of trust. Among advised investors, 83% have high trust in their adviser’s professional competency, while 77% report high overall trust.

Praemium Chief Commercial Officer, Denis Orrock said the results show that advice provides value beyond portfolio construction and investment selection.

“HNW investors are financially knowledgeable and closely involved in their wealth — they’re not looking to hand over every decision. What they value is an adviser they trust, who understands their circumstances and gives them greater confidence in the choices they make.”

HNW clients prioritise relevance over price

A genuinely personalised approach is the leading “must-have” for advised HNW investors, selected by 39%. This is closely followed by a clear investment strategy with strong justification for decisions at 38%, and strong investment performance at 34%.

Strong communication is the most frequently nominated “nice-to-have”, cited by 35%, while 28% regard it as essential. Easy-to-use reporting or a digital portal is considered a must-have by 30% of advised investors. Competitive fees rank lower, identified as essential by 14%.

The findings suggest that HNW clients assess value through the quality and relevance of the advice experience, rather than price alone.

Reasons for engaging an adviser reinforce that point. Tax and estate planning is the most common reason HNW investors seek advice, cited by 53%, followed by peace of mind and reassurance at 47%, access to expertise they do not possess at 46%, and an objective perspective on their decisions at 43%.

“What stands out is that these investors aren’t outsourcing confidence, they’re supplementing it. Tax and estate planning top the list of reasons for seeking advice at 53%, but peace of mind, access to expertise and an objective second opinion all sit close behind. This is a segment that knows its own mind and wants an adviser who adds to it, with real technical depth where it counts, someone to test their thinking, and a strategy explained clearly enough to stay engaged with. The advisers who grasp that distinction are the ones who keep these clients,” CoreData CEO Andrew Inwood said.

Trust is sustained through the client experience

The research found high satisfaction across most elements of advice, including fees and value for money, progress towards financial goals, investment performance and personalisation. Communication recorded the lowest satisfaction result, although 84% of advised investors remained satisfied with it.

Clients seeking more adviser support nominated tax planning and minimisation strategies as their biggest need at 40%, followed by more regular or in-depth portfolio reviews at 33%, SMSF and superannuation strategy at 31%, and preparing the next generation for inheritance at 30%.

The qualitative research also found that clients associated adviser value with being accessible, proactive and transparent, particularly during periods of market uncertainty. Poor communication, perceived neglect and a lack of honesty about performance could quickly undermine an otherwise established relationship.

“Communication is where satisfaction sits lowest and where clients most want more — even among those who are otherwise very happy. Technical competency establishes credibility, but trust is sustained or lost through how an adviser communicates, especially when markets are volatile. The advisers who win this segment will be the ones who stay accessible, proactive and transparent” Orrock said.

Justin Delaney

Zurich Financial Services Australia (Zurich) has released Australia’s first comprehensive Resilience Index, revealing more than one in five Australians face significant vulnerability, driven predominantly by financial insecurity.

The Australian Resilience Index – developed by Zurich in collaboration with Mandala Partners, the RedBridge Group and Accent Research – utilises two million proprietary and public data points and represents the first comprehensive, quantitative assessment of resilience across Financial, Health, Social and Environmental parameters at a local community level^[1].

Resilience, or the ability of people and communities to withstand and recover from shocks, is measured and aggregated across four dimensions:

• Financial Resilience, including savings, insurance coverage and superannuation balances;
• Health Resilience, including physical & mental health conditions, access to care and lifestyle factors;
• Social Resilience, such as crime rates, community participation and belonging; and
• Environmental Resilience, including planning, infrastructure and service availability.

Overall resilience was found to be most correlated with financial wellbeing, over social, health or environmental factors. Within individual measures, insurance coverage was identified as a key driver of overall resilience, with communities registering insurance penetration of 50 per cent or more being five times more likely to have higher financial resilience and four times more likely to have higher health resilience.

Of the nearly 2,500 local areas analysed, Cottesloe in Western Australia (WA) was identified as the nation’s most resilient, driven by the highest average dividend income rate in the country (16 times the national average), seven times higher average superannuation balances, double the insurance penetration, a third of the long-term health conditions, half the smoking rate and double the level of community volunteering.

Of the ten least resilient areas in the nation, half are located in the Northern Territory (NT), including the Tiwi Islands which scored lowest overall. Residents in this area are over 80 times more likely to live in crowded housing, experience five times the national rate of crime, have access to zero hospitals within 15 kilometres, and are more likely to experience weakened social belonging than any other local area.

Middle-aged males (35-49) are Australia’s most resilient demographic group, driven by high income levels (81 per cent earning above the median, versus 60 per cent of females the same age), higher superannuation balances & dividend incomes, and far lower rates of primary caregiving. This is despite poorer health resilience, driven by obesity, smoking and alcohol consumption, and lower social resilience, due to weakened belonging and “feeling like a stranger in their own country”.

Financial resilience

• Cottesloe (WA) is the most financially resilient community in the country, while the Torres Strait Islands in Queensland (QLD) is the least.
• Across jurisdictions, the Australian Capital Territory (ACT) has the highest and QLD the lowest levels of financial resilience.
• Across all communities, financial resilience rises sharply with age and is substantially stronger among men.

Health resilience

• Toorak in Victoria (VIC) has the highest health resilience in the country, while Bridgewater-Gagebrook in Tasmania (TAS) has the lowest.
• Across jurisdictions, New South Wales (NSW) has the highest and TAS the lowest levels of health resilience.
• Younger people (15–34) exhibit the highest health resilience, driven by substantially lower rates of obesity, long-term health conditions, smoking and care requirements. This is despite markedly higher rates of mental health conditions.
• Women are healthier on average than men, who are almost three times more likely to report unhealthy alcohol consumption, 50 per cent more likely to smoke, and 24 per cent more likely to be overweight or obese.

Social resilience

• City Beach (WA) has the highest levels of social resilience in the country, while Thamarrurr (NT) has the lowest.
• Across jurisdictions, the ACT has the highest and the NT has the lowest levels of social resilience.
• Social resilience is lowest among younger people (15–34), driven by half the rate of partnered relationships, lower rates of community participation, and an 83 per cent increased likelihood of experiencing household crime.
• Across the board, women are less socially resilient than males, including being four times more likely to be a single parent, 30 per cent more likely to feel uncomfortable expressing political views and 27 per cent more likely to report victimisation.

Environmental resilience

• Surry Hills (NSW) has the highest levels of environmental resilience in the country, while the Tiwi Islands (NT) has the lowest.
• Across jurisdictions, VIC has the highest and the NT the lowest levels of environmental resilience.
• Males and people aged over 34 are far more likely to have higher environmental resilience than other cohorts, driven by higher home ownership rates, living in areas with stronger economic & infrastructure investment and increased access to services.

Justin Delaney, Chief Executive Officer, Zurich said: “Insurance sits at the intersection of these four dimensions of resilience. It protects financial stability when shocks occur, supports health & wellbeing through prevention and recovery services, and relies on – and contributes to – social cohesion and environmental preparedness by pooling risks and supporting communities.”

“As Australia’s only major composite insurer, Zurich has a responsibility to use our data and insights broadly and systemically – to better understand the pressures facing our customers and the community to continue to evolve our propositions around prevention, early intervention and long-term protection.”

“We believe this Index can provide a unique and valuable perspective on a range of critical policy conversations and ways to target and prioritise public & private investments. More broadly, it highlights our increasing ability to understand both the prevailing risk and resilience environment and the benefits and return that accrues to early and proactive intervention at both a community and individual level,” Mr Delaney said.

Adam Triggs, Partner, Mandala said: “Australians face multidimensional risks – financial, economic, environmental, technological, social, geopolitical and health – and these risks are more correlated than ever before. The focus on resilience given the breadth, depth and unpredictability of these risks has never been more important.”

“Luckily, modern datasets and new data science techniques allow us to measure resilience at a granular level with significant clarity. This is what we do at Mandala, and we’re excited to use this Index to help governments, businesses and households to measure and improve their own resilience and better target support.”

“Which communities will be impacted most by interest rate rises? Which communities will bear the burden of chronic health conditions? How will technology changes impact different communities? Why are some communities turning to political extremes? Which communities are most at risk in the upcoming bushfire season? For the first time, this index lets us answer these questions and many more,” Mr Triggs said.

Kos Samaras, Director, Strategy & Analytics, the RedBridge Group said: “We tested this at the Secret Harbour by-election in Western Australia. The suburbs scoring lowest on financial and health resilience told us what was coming before a single vote was counted.”

“This index shows us where Australians have run out of buffer. When savings, insurance and super are thin, every shock lands harder, whether it’s a rate rise, a health scare, losing a job or a natural catastrophe. Those communities don’t just feel it in their bank balance, they demonstrate it in their trust in institutions and in how they vote. For governments and businesses trying to understand where the country is heading, the Resilience Index is now one of the most important lenses we have,” Mr Samaras said.

More about the Australian Resilience Index.

]]>

Justin Delaney

Zurich Financial Services Australia (Zurich) has released Australia’s first comprehensive Resilience Index, revealing more than one in five Australians face significant vulnerability, driven predominantly by financial insecurity.

The Australian Resilience Index – developed by Zurich in collaboration with Mandala Partners, the RedBridge Group and Accent Research – utilises two million proprietary and public data points and represents the first comprehensive, quantitative assessment of resilience across Financial, Health, Social and Environmental parameters at a local community level^[1].

Resilience, or the ability of people and communities to withstand and recover from shocks, is measured and aggregated across four dimensions:

• Financial Resilience, including savings, insurance coverage and superannuation balances;
• Health Resilience, including physical & mental health conditions, access to care and lifestyle factors;
• Social Resilience, such as crime rates, community participation and belonging; and
• Environmental Resilience, including planning, infrastructure and service availability.

Overall resilience was found to be most correlated with financial wellbeing, over social, health or environmental factors. Within individual measures, insurance coverage was identified as a key driver of overall resilience, with communities registering insurance penetration of 50 per cent or more being five times more likely to have higher financial resilience and four times more likely to have higher health resilience.

Of the nearly 2,500 local areas analysed, Cottesloe in Western Australia (WA) was identified as the nation’s most resilient, driven by the highest average dividend income rate in the country (16 times the national average), seven times higher average superannuation balances, double the insurance penetration, a third of the long-term health conditions, half the smoking rate and double the level of community volunteering.

Of the ten least resilient areas in the nation, half are located in the Northern Territory (NT), including the Tiwi Islands which scored lowest overall. Residents in this area are over 80 times more likely to live in crowded housing, experience five times the national rate of crime, have access to zero hospitals within 15 kilometres, and are more likely to experience weakened social belonging than any other local area.

Middle-aged males (35-49) are Australia’s most resilient demographic group, driven by high income levels (81 per cent earning above the median, versus 60 per cent of females the same age), higher superannuation balances & dividend incomes, and far lower rates of primary caregiving. This is despite poorer health resilience, driven by obesity, smoking and alcohol consumption, and lower social resilience, due to weakened belonging and “feeling like a stranger in their own country”.

Financial resilience

• Cottesloe (WA) is the most financially resilient community in the country, while the Torres Strait Islands in Queensland (QLD) is the least.
• Across jurisdictions, the Australian Capital Territory (ACT) has the highest and QLD the lowest levels of financial resilience.
• Across all communities, financial resilience rises sharply with age and is substantially stronger among men.

Health resilience

• Toorak in Victoria (VIC) has the highest health resilience in the country, while Bridgewater-Gagebrook in Tasmania (TAS) has the lowest.
• Across jurisdictions, New South Wales (NSW) has the highest and TAS the lowest levels of health resilience.
• Younger people (15–34) exhibit the highest health resilience, driven by substantially lower rates of obesity, long-term health conditions, smoking and care requirements. This is despite markedly higher rates of mental health conditions.
• Women are healthier on average than men, who are almost three times more likely to report unhealthy alcohol consumption, 50 per cent more likely to smoke, and 24 per cent more likely to be overweight or obese.

Social resilience

• City Beach (WA) has the highest levels of social resilience in the country, while Thamarrurr (NT) has the lowest.
• Across jurisdictions, the ACT has the highest and the NT has the lowest levels of social resilience.
• Social resilience is lowest among younger people (15–34), driven by half the rate of partnered relationships, lower rates of community participation, and an 83 per cent increased likelihood of experiencing household crime.
• Across the board, women are less socially resilient than males, including being four times more likely to be a single parent, 30 per cent more likely to feel uncomfortable expressing political views and 27 per cent more likely to report victimisation.

Environmental resilience

• Surry Hills (NSW) has the highest levels of environmental resilience in the country, while the Tiwi Islands (NT) has the lowest.
• Across jurisdictions, VIC has the highest and the NT the lowest levels of environmental resilience.
• Males and people aged over 34 are far more likely to have higher environmental resilience than other cohorts, driven by higher home ownership rates, living in areas with stronger economic & infrastructure investment and increased access to services.

Justin Delaney, Chief Executive Officer, Zurich said: “Insurance sits at the intersection of these four dimensions of resilience. It protects financial stability when shocks occur, supports health & wellbeing through prevention and recovery services, and relies on – and contributes to – social cohesion and environmental preparedness by pooling risks and supporting communities.”

“As Australia’s only major composite insurer, Zurich has a responsibility to use our data and insights broadly and systemically – to better understand the pressures facing our customers and the community to continue to evolve our propositions around prevention, early intervention and long-term protection.”

“We believe this Index can provide a unique and valuable perspective on a range of critical policy conversations and ways to target and prioritise public & private investments. More broadly, it highlights our increasing ability to understand both the prevailing risk and resilience environment and the benefits and return that accrues to early and proactive intervention at both a community and individual level,” Mr Delaney said.

Adam Triggs, Partner, Mandala said: “Australians face multidimensional risks – financial, economic, environmental, technological, social, geopolitical and health – and these risks are more correlated than ever before. The focus on resilience given the breadth, depth and unpredictability of these risks has never been more important.”

“Luckily, modern datasets and new data science techniques allow us to measure resilience at a granular level with significant clarity. This is what we do at Mandala, and we’re excited to use this Index to help governments, businesses and households to measure and improve their own resilience and better target support.”

“Which communities will be impacted most by interest rate rises? Which communities will bear the burden of chronic health conditions? How will technology changes impact different communities? Why are some communities turning to political extremes? Which communities are most at risk in the upcoming bushfire season? For the first time, this index lets us answer these questions and many more,” Mr Triggs said.

Kos Samaras, Director, Strategy & Analytics, the RedBridge Group said: “We tested this at the Secret Harbour by-election in Western Australia. The suburbs scoring lowest on financial and health resilience told us what was coming before a single vote was counted.”

“This index shows us where Australians have run out of buffer. When savings, insurance and super are thin, every shock lands harder, whether it’s a rate rise, a health scare, losing a job or a natural catastrophe. Those communities don’t just feel it in their bank balance, they demonstrate it in their trust in institutions and in how they vote. For governments and businesses trying to understand where the country is heading, the Resilience Index is now one of the most important lenses we have,” Mr Samaras said.

More about the Australian Resilience Index.

The post Launch of Australian Resilience Index shows the threat of financial insecurity appeared first on AdviserVoice.

Glenn Baird

Australians value time with their mates, but new research suggests many are skipping the moments that can help them feel supported and connected.

TAL’s Understanding Modern Australia Report shows Australians place a high value on personal connection. But for many, life gets in the way, cancelling plans because they feel tired, stressed or financially stretched. 

Glenn Baird, Head of Mental Health at TAL, said connecting with friends, family and community should be seen as a wellbeing habit.

“Our research shows Australians deeply value their relationships but say they lack the time or resources to connect. At the same time, most people – more than 7 in 10 – are making time for activities that support their mental wellbeing^[1]. The opportunity is to bring these things together by treating connection as part of how we look after ourselves.”

“For many people, friends and regular social contact are deeply linked to how they feel day to day. That is why saying yes to a simple invitation, or offering one to someone else, can matter.”

“It doesn’t need to be complicated or time-consuming. It can be a quick call, a walk around the block, or accepting an invitation you would usually decline,” Mr Baird said.

Low-pressure plans help people stay connected

A separate TAL survey^[2] looking at Australians’ habits around social connection found fatigue is the main reason people cancel plans (37%), 35% cancel because they do not feel like going out and 26% because they need time alone. Women are more likely than men to say tiredness gets in the way of social plans (45% compared with 28%). One in five cancelled plans because of cost (20%).

The survey found people are more likely to follow through when plans are simple and low friction. Being close to home (54%), at a convenient time (47%) or free (45%) are the strongest prompts to attend a social event.

Mr Baird said this provides a useful reminder for friends and family: the easier the invitation, the more likely connection is to happen.

“Make a plan that feels easy to commit to. Keep it close to home and choose a time that works. A low-key catch-up is better than an ambitious plan that never happens,” Mr Baird said.

Friends play a central role in feeling well

Close friends are the leading choice for supporting wellbeing, with 45% of Australians saying they turn to close friends when they want to lift their mood, ahead of partners (42%) and family (41%). This is even higher among women (50%).

The survey also shows the role of connection changes across life stages. Among 18 to 24-year-olds, friends dominate as a mood boost (61%), over partners (32%). In middle age, partners, friends and children become more balanced. Among Australians aged over 65, partners (43%), family (42%) and friends (38%) all remain important.

“We know more frequent social contact is associated with better overall health^[3], and in particular our mental health,” said Mr Baird.

“There is no one right way to connect. For some people, it is a regular walk with a friend. For others, it is a family meal, a community group or a phone call. The best form of connection is the one people can actually keep doing.”

This year, Mental Health Australia has chosen ‘Together We Thrive’ as the theme for Mental Health Month, recognising the important role connection, belonging and support play in positive mental health outcomes. 

Glenn Baird’s strategies for better social connection:

• Say yes to one small thing. A short walk, coffee or call can be enough.
• Check in properly. Ask how someone is and give them time to answer.
• Make the invitation easy. Choose somewhere close to home, low cost and simple to leave if needed.
• Try a connection habit. Build one regular message, call or catch-up into your week.
• Connect while doing something else. Walk together, cook together, run an errand together or share a meal.

———–

Notes:
[1] TAL’s Understanding Modern Australia report is a new longitudinal research platform designed to track how Australians’ think, feel and behave, over time, in an increasingly complex and fast-paced world. The report’s insights are based on a nationally representative survey (by gender, age and state) of 2,005 Australians which was in field from 28 April to 8 May 2026 and was conducted by McCrindle. The report found that 73% say they deliberately build practices into their week to support good mental health.
[2] The survey was conducted by Edentify Pty Ltd on behalf of TAL, in September 2026, with a sample of 1,000 respondents in Australia aged 18-65+ years old.
[3] Australian Institute of Health and Welfare, https://www.aihw.gov.au/mental-health/topic-areas/health-wellbeing/social-isolation-and-loneliness

Fannie Wurtz

As retirement planning takes center stage, advisory and financial education are more important than ever according to Amundi’s global study.

• While personal savings become the main expected source of retirement income, only 23% of investors feel very confident about their long term financial security.
• Nearly half of savers expect to start investing within the next 12 months, but just as many remain held back by the fear of losing money and continue to sit on excess cash rather than entering markets.
• One in four retail investors consider themselves beginners. And among those who describe themselves as confident or expert, seven in ten have limited financial literacy.
• Professional advice, sought by 60% of investors, remains central and is being complemented by new practices: 70% of investors use AI to help inform their investment decisions, and nearly one in two seek information via influencers.

Amundi, Europe’s largest asset manager, has released the results of the third edition of its Decoding Investors study, focused on retail investors and savers. Conducted in 26 countries among 18,000 respondents, the study analyses their objectives, fears, behaviours and sources of investment information

The 2026 edition shows that retirement sits at the centre of investors’ concerns, but that many lack the confidence and knowledge needed to turn savings into long-term investment plans.

The key findings are:

Funding retirement: a clear priority, but with a gap between intent and confidence

Personal savings and investments are now the largest expected source of retirement income, with investors hoping they will fund 42% of their retirement pot, ahead of state provision and workplace pensions. This is higher in Asia with investors across the region expecting to fund more than 50% of their retirement from personal savings and investments.

Despite this, only 36% of investors cite retirement (34% in Europe vs 40% in Asia) as a key motivation for investing, and of those, just 23% feel very confident of achieving long-term financial security versus 26% a year before. This highlights a clear gap between the importance investors attach to retirement and their ability and confidence in being able to fund it.

Professional advice makes a significant difference to how confident investors feel about retirement: half of advised investors say they are very confident about funding their retirement, compared with just 14% among those who have never accessed advice.

The confidence gap is keeping savers in cash

The study shows that nearly half (43%) of savers expect to start investing within the next 12 months (a figure that rises to 62% among 21-30-year-olds), but 39% are still held back by the fear of losing money.
The intention to invest varies considerably by country: Danish savers lead the way (79%), followed by Singaporeans (73%), while Belgians and Germans are the least likely to show interest in taking the leap (24%).

In practice, this often means staying in cash for longer than necessary rather than participating in capital markets: for a majority (52%) of savers an emergency fund of less than six months of income is enough to buffer for unexpected expenses, yet, most are holding far more cash.

Financial literacy: belief vs reality

Beyond confidence, financial literacy also plays a crucial role. The study highlights a stark contrast between investors’ confidence and their actual level of financial knowledge: 70% of those who describe themselves as “experts” failed to answer three basic financial literacy questions correctly.

The pattern is most pronounced at the top of the wealth ladder. High-net-worth investors, while the most confident, had the lowest literacy rates, with only 36% answering all three financial literacy questions correctly. However, they are also the most likely to seek advice from professional advisers (87%), versus 58% among retail investors.

AI and social media usage are rising, but professional advice remains essential

In just one year, regular use of AI assistants as a source of investment ideas or information grew four-fold in 2026 to reach 19%.

Most strikingly, seven in ten investors have previously used AI to help them make investment decisions. More than half of them (59%) have acted on its recommendations, and almost all of them (90%) say they are satisfied with the outcome.

But investors are also turning to social media: nearly one in two investors (46%) seek investment information via influencers. This is particularly the case in India (68%) and Brazil (65%), while European countries such as France (28%), Spain (37%) and Germany (40%) remain behind.

These new sources of information do not replace professional advice, they rather complement it by helping investors confirm ideas or validate recommendations. More than 60% of investors claim to have access to at least some professional financial advice, which is increasingly delivered through digital means, with 59% of respondents now receiving all or part of their advice online.

Fannie Wurtz, Amundi’s Deputy General Manager, Head of Clients Group notes, “While funding retirement becomes a central concern for households globally, the third edition of our Decoding Investors study highlights a pressing challenge: helping more savers become investors and enter capital markets.

“For our industry, this means strengthening trust, improving access to investor education notably through digital channels and offering simple, transparent and accessible solutions. Drawing on its expertise, Amundi supports its clients in meeting this challenge through investment solutions, technology tools and support tailored to the long-term needs of saving.”

Read the report.

David Lane

The Australian Government’s 2026 Intergenerational Report highlights a future where Australians are living longer, retirement is lasting longer, and financial decisions are becoming increasingly complex. With life expectancy projected to reach 89.5 years for women and 86.1 years for men by 2065–66, and the number of Australians aged 85 and over expected to triple, the importance of proactive financial planning has never been greater.

These trends create both opportunities and challenges. Longer lives mean longer retirement periods, increased healthcare and aged care considerations, and more complex intergenerational wealth transfer decisions. The financial decisions made today may need to support outcomes decades into the future.

Qualified financial advisers play a critical role in helping Australians navigate this complexity through integrated advice covering superannuation, investments, tax, retirement income, risk management, estate planning and succession strategies. As longevity increases, the value of holistic financial advice becomes more important than ever.

The 2026 Intergenerational Report confirms that Australia’s superannuation system has been successful in assisting Australians in accumulation and preparing a greater proportion of the country for retirement. Concerningly though, it highlights the growing divide between the wealth and opportunities of our older and younger generations.

Due in part to the strength of superannuation, and the growth in wealth, the report predicts that the proportion of older Australians receiving an Age Pension or income support payment will fall from 66% currently to 52% by 2066. This will lead to a projected decline in Government spending on the Age and Service Pensions from 2.3% of GDP to 1.8% of GDP by 2066.

As the superannuation system matures, Australians are accumulating greater retirement savings, with median balances for those nearing retirement projected to more than double over the coming decades. This shift means that superannuation will increasingly become the primary source of retirement income, reducing reliance on the Age Pension and placing more responsibility on individuals to manage their financial wellbeing.

Comprehensive financial advice can help retirees balance income needs, lifestyle goals, and the costs of care, ensuring a comfortable and sustainable retirement.

Wealth accumulation is shaped by factors such as home ownership, investment strategies, and superannuation contributions. However, younger generations face new challenges, including slower wealth growth and barriers to entering the property market. As a result, tailored financial advice is essential to help individuals make informed decisions, optimise their savings, and build a secure financial foundation. Many families have become more active in planning for wealth transfer during life, rather than leaving large estates, and this trend is likely to continue to be more prominent.

Looking ahead, Australia is set to experience the largest intergenerational wealth transfer in its history, as older Australians pass on assets, particularly housing and superannuation, to younger family members. Estate planning and intergenerational wealth transfer strategies are becoming increasingly important to ensure assets are distributed according to wishes, tax implications are managed, and family members are supported.

As the Intergenerational Report demonstrates, the financial decisions Australians make today may have consequences spanning decades. Seeking advice early can help individuals maximise opportunities during their working years, while regular reviews ensure strategies remain relevant as personal circumstances, legislation and economic conditions evolve.

Qualified financial advice plays a critical role in helping individuals and families make informed decisions with confidence. Holistic financial advice extends well beyond investment selection. It integrates retirement planning, superannuation, tax optimisation, risk management, estate planning, cash flow management and family wealth strategies into a cohesive plan aligned with a client’s goals and values.

By David Lane, Head of Wealth Advisory

———-

Source: Australian Treasury, Intergenerational Report 2026.

Andrew Yap

Zenith Investment Partners’ survey of 430 Australian advisers has identified a sizable gap between where practices expect growth to come from and how prepared they are to service it.

The From Adoption to Advantage 2026 report finds three in four advisers (75 per cent) rate the growing pool of retirees and pre-retirees as very or extremely important to their practice’s growth over the next two to five years. Additionally, 57 per cent identify the intergenerational transfer of wealth, as ageing clients pass portfolios to their children, as a priority.

Yet the research shows just 31 per cent of managed account users currently run a strategy specifically designed for clients who are in the decumulation stage, despite 90 per cent of practices already having decumulation clients on their books. When it comes to the inter-generational wealth transfer, just 26 per cent of practices already have a specific strategy for engaging the adult children who stand to inherit their clients’ portfolios. A further 53 per cent are still planning to build one, while 21 per cent have no plan to do so.

“Advisers can see exactly where their next five years of growth is coming from. It’s the client in front of them today moving into retirement, and it’s the children who will eventually inherit what’s left,” Andrew Yap, head of portfolio solutions at Zenith says.

“What this research shows is that many practices are not yet set up to provide a distinct investment approach for clients already drawing down or having a clear plan for engaging the next generation.

“You can’t build a growth strategy around a client base you’re not properly set up to serve.”

Larger practices are further ahead on next-generation engagement. Among practices managing 300 or more clients, 29 per cent already have a specific strategy in place, compared with 20 per cent of moderate-sized practices.

The research also found that managed accounts are becoming the default operating model for advice practices looking to scale, with 66 per cent of advice practices now using managed accounts, up from 58 per cent in the previous year. The findings come as Australia’s managed accounts sector continues to expand rapidly, with $292.9 billion under management as at December 2025, up 25.8 per cent in a single year and projected to exceed $470 billion by 2030, according to IMAP and Milliman’s Managed Accounts FUM Census.

Zenith’s research points to a path forward, with advisers who commit to managed accounts reporting substantially stronger results for clients. 91 per cent of practices with the majority of client funds in managed accounts report a positive impact on client outcomes and satisfaction, compared with 64 per cent of those who have only adopted the structure lightly.

“The advice practices best positioned for what lies ahead are the ones treating retirement income needs and the inter-generational wealth transfer as distinct disciplines, rather than extensions of what they already do,” Yap says.

“Advisers who have committed a greater share of client funds to managed accounts report fewer gaps in retirement income support than those who have adopted managed accounts more lightly.

“That means advisers need a genuinely different investment approach for someone living off their portfolio, and it means bringing the next generation into the room years before they inherit anything, rather than scrambling to build a relationship with them after the fact.

“The advisers seeing the strongest results are those who have committed to managed accounts and are using them to strengthen their retirement and next-generation strategies.

“The research suggests the practices already doing this well provide a clear model for others to follow.”

A new national benchmark tracking the attitudes and behaviours shaping modern Australia has revealed a growing disconnect between financial engagement and financial confidence, highlighting a significant opportunity for financial advisers as Australians increasingly turn to AI and digital tools to support financial decisions.

Developed by TAL in partnership with McCrindle, the Understanding Modern Australia report is a new longitudinal research platform designed to track how Australians’ think, feel and behave, over time, in an increasingly complex and fast-paced world.

The corresponding index measures the gap between what Australians believe and how they behave, shaping their confidence across the five pillars of modern life: health and wellbeing, society and culture, financial wellbeing, digital life and personal connections.

The inaugural findings reveal Australians are highly engaged with their finances, but many struggle to translate that engagement into action.

While 86% regularly monitor their spending and 80% prioritise budgeting and financial planning, only 28% are satisfied with their finances, 62% feel stressed when thinking about money, and one in three (32%) do not feel in control of their financial future. The report also identified the largest gap between aspiration and action in the financial pillar, with an 18-point difference between how strongly Australians value good financial habits and how consistently they put them into practice.

Australians who hold life insurance recorded an eight-point higher index score than those without cover (76 vs 68), reinforcing the role protection can play in supporting financial confidence, resilience and long-term security.

Mark McCrindle, Founder and Principal at McCrindle, said the research reflects a broader shift in how Australians are making financial decisions.

“Technology has fundamentally changed how Australians access information, make decisions and seek advice. As information becomes more accessible, we’re seeing a generation of consumers who are more self-directed and more willing to do their own research than ever before,” Mr McCrindle said.

The research found more than 3 million Australians already use AI to help manage their financial activity, with one in five trusting AI to recommend a financial product suited to their needs. Yet when it comes to making financial decisions, Australians remain significantly more likely to act on advice from a paid financial adviser than guidance from AI, family, online resources or social media.

Fiona Macgregor, TAL Group CEO and Managing Director, said the findings highlight a broader shift in how Australians are navigating financial decisions, with trust becoming more important.

“Australians have never had greater access to financial information. The organisations that thrive will be those that understand how this is changing behaviour. While technology is making information easier to access, it’s also reinforcing the importance of trust, human judgement and genuine connection when people are making important decisions. 

“The Understanding Modern Australia report shows the rise of the hyper-informed DIY generation is reshaping the advice profession. As a result, advisers are evolving from information providers to trusted partners who help clients navigate complexity, apply judgement and build the confidence to act,” Ms Macgregor said.

The research also suggests Australians are increasingly comfortable with advisers embracing AI, provided it is used transparently.

More than half (57%) of Australians are comfortable with financial advisers using AI tools to help inform advice, while 87% want to know when AI has been used in generating financial advice, reinforcing that trust and transparency will become increasingly important as technology becomes more embedded in advice businesses.

Mark Mullins, Hood Sweeney Director and Life Insurance Specialist, leads an AI Working Group and is excited by what technology can do for both clients and advisers:

“People interacting with AI in a meaningful way understand it’s not perfect. But at the same time, it’s an incredible resource for building knowledge.

“We love it when clients use AI to inform themselves, to ask questions and test the advice that we’re putting forward to them, because in the end they will see more value in the advice we provide, and that should strengthen our relationship,” Mr Mullins said. 

The Understanding Modern Australia report and corresponding index is designed to become an annual benchmark, helping financial advisers better understand the evolving behaviours, expectations and decision-making drivers shaping their clients. TAL and McCrindle will explore the inaugural findings in more detail during an upcoming TAL Risk Academy session on September 16.

Read the report.

Liz McCarthy

MLC Expand has launched a new income deferral feature within MLC Retirement Boost™, giving financial advisers and their teams another way to help clients build retirement income strategies.

MLC Retirement Boost, MLC Expand’s innovative retirement income stream (IRIS) solution, can provide up to 60% more income in retirement when complemented by traditional retirement products like an account-based pension. It has two flexible phases:

• MLC Retirement Boost (Super) operates like a standard accumulation superannuation account, while potentially enabling clients to access means test concessions for the Government Age Pension. The earlier customers contribute to MLC Retirement Boost (Super), the greater their potential Age Pension entitlements.
• MLC Retirement Boost (Pension) is designed to deliver retirement income for life, with Chant West confirming it delivers some of the highest income rates of lifetime products, and can be used separately or alongside clients’ account-based pension.

The new income deferral feature within the Pension phase gives financial advisers additional flexibility when designing retirement strategies for eligible clients by allowing them to defer part of their retirement income. By creating a future income stream, the feature can help clients plan for higher spending needs later in retirement, including healthcare, aged care and other retirement expenses.

The launch expands the capabilities of MLC Retirement Boost, which was designed to support our members with greater confidence, flexibility and certainty in retirement and help advisers provide more personalised retirement solutions that can help optimise members’ retirement outcomes.

MLC Expand CEO, Liz McCarthy, said: “We’re seeing more Australians move into retirement gradually, whether that’s continuing to work part-time, retiring at different times from their partner, or simply wanting more flexibility about when they start drawing an income.

“This new income deferral feature within MLC Retirement Boost gives advisers another practical way to help clients shape their retirement around their individual circumstances. It allows clients to decide when lifetime income starts, while keeping more flexibility through the earlier years of retirement.

“For some clients, delaying income can support Age Pension outcomes and help grow the income available later in life. It can also provide confidence that they have money set aside for the years when they may need it most.”

MLC Director of Retirement Innovation, Ashton Jones said: “We’ve heard from advisers that retirement is rarely a single event. It’s often a transition that unfolds over several years. This enhancement supports those conversations and gives advisers more choice in how they help clients balance flexibility today with certainty for the future.

“MLC Retirement Boost was designed to help advisers have a different conversation with clients about retirement income and confidence. We’ve seen strong adviser adoption since launch, and with Chant West’s confirmation earlier this year that we have the highest lifetime income rates, advisers have consistently told us it’s helping give their clients greater confidence about their income throughout retirement.

“We’ve also listened to feedback from advisers and have now removed a previous product restriction that meant those aged over 58 years did not qualify for MLC Retirement Boost (Super). This, along with the introduction of income deferral are examples of how we’re continuing to build practical solutions that fit the way advisers and their support teams work, and help clients make more of their retirement savings.”