A cocktail of economic factors has made Australians feel vulnerable about their financial stability and in urgent need of advice, research commissioned by the FPA has found.
Over two-thirds (69 per cent) of the nation fear their job could be at stake if a recession hits, a study conducted in the first quarter of 2008 showed.
“Obtaining financial advice and developing an ongoing relationship with a financial planner can help Australians ride out volatile financial cycles,” FPA chief executive Jo-Anne Bloch said.
Top of the list of economic concerns is the soaring price of consumer basics, like food and petrol (91 per cent).
Three-quarters were most concerned about rising interest rates; 60 per cent were worried about recession and its impact on job security; 52 per cent about uncertainty in property prices and 47 per cent lost sleep over share market volatility.
“Market volatility is spooking younger investors, whereas older ones, who are more likely to have a financial planning relationship and longer term plans, though worried are less likely to change tack when markets fall,” Bloch said.
Australians with an active relationship with a financial planner are more likely to have bought shares (10 per cent) as a result of share market volatility, the research found.
Levels of concern about volatility were highest among those with direct investment in shares or managed funds (63 per cent), but were also high among people with DIY super and other super (52.5 per cent).
The study Financial Planning in a Volatile Economic Environment was done by Galaxy Research.
The eighth national Financial Planning Week starts May 19. The FPA event aims to raise Australians’ awareness about the importance of financial planning.
