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Gen Ys in need of savings advice
Gen Ys are spending sleepless nights worrying about their finances but many do not trust planners enough to seek professional advice, according to a REST Industry Super survey.
It found that almost two thirds of Gen Ys had been kept awake at night by financial concerns and 61 per cent had never been taught how to save.
REST Industry Super chief executive Damian Hill said it was not surprising that Gen Ys worried about finances, given their low take-up of financial advice.
Half of the respondents said they would not talk to a financial adviser while one in 10 completely distrusts them.
"With over half the generation refusing to talk to a financial expert, and one in 10 completely distrusting them, we have to reassess the role of family, government and financial institutions, including superannuation funds, in educating young people about money and helping them make the most of their short-term and long-term financial goals," Hill said.
Of the small number who received financial advice, 72 per cent said they found it useful.
Gen Ys did acknowledge the importance of saving but did not appear to know how to save properly, the survey found.
Saving was important to 87 per cent of Gen Ys with two thirds saving regularly, but those working full time were more likely to save for a holiday or wedding than a house deposit.
Nearly two thirds of Gen Ys had not been taught anything about money from parents and 70 per cent were reluctant to go to family for budgeting, savings or investment advice.
Smart phone apps are not having as big an effect as financial institutions may have hoped, with only 39 per cent using financial or money-related apps.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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