The decision to pay for financial advice through a commission fee model versus a fee-for-service model has little bearing on the overall quality of the advice, an industry report has found.
Data from the latest Roy Morgan Research Retirement Planning report found there was little difference between how the 42 per cent of Australians who paid for advice through a commission agreement and the 40 per cent who paid under a fee-for-service model rated the value of advice they received.
"Amidst the debate in the industry regarding the Future of Financial Advice reforms and the proposed ban on commission payments on superannuation, our study has shown that the vast majority of those who have used a financial planner for their investment or superannuation needs have felt satisfied with the value they have received for the service," Roy Morgan Research industry communications director Norman Morris said.
Of those that have never used a financial planner, 15.9 per cent believe they do not earn enough or have insufficient funds to make a meeting worthwhile.
"Fees and charges are also a reason, with 12.1 per cent believing that advice is too expensive and/or cannot afford the service," the report said.
The report also found, 42.9 per cent of Australians with superannuation perform their own research to help make decisions about their superannuation, with 32. 2 per cent seeking advice from family and friends, with only 27.2 per cent seeking advice from a professional financial adviser and 21.4 per cent from an accountant.
It found 73.9 per cent of Australians with superannuation who have used a financial planner feel they either receive good or fair value from the service, while 17.8 per cent feel they receive poor value.
"Of those that have ever used a financial planner, they are more likely to be married, own their own home, have a high superannuation balance, and contribute beyond compulsory superannuation level," the report said.
"Those that have not used a planner are more likely to be younger and renting."
The report found 66 per cent of Australians with superannuation have not begun planning for their retirement.
Roy Morgan Research conducted an online survey amongst 1,597 people in March 2011.
