Retiree Surge to Drive Demand for Financial Advisers in Australia
Retiree Surge to Drive Demand for Financial Advisers in Australia
1
A recent study by Adviser Ratings, as outlined in the 2025 Australian Financial Advice Landscape Report, indicates that the number of financial advisers in Australia will need to increase significantly.
From the present count of 15,500 advisers, the industry is expected to require more than 50,000 over the next thirty years to cater to a growing retiree population.
Ben Marshan of Marshan Consulting has likened the upcoming situation to a demographic "tsunami." He projects the retiree population will expand from 7.8 million to 16 million, increasing by 105 per cent. Notably, the fastest growth will be among those aged 65–74, projected to rise by 108 per cent, and those over 75, expected to surge by 164 per cent. These groups will reach critical stages where making informed financial decisions becomes crucial.
The current landscape already shows demand outpacing supply. Only 1.2 million Australians aged 55 and above currently receive financial advice, while the average adviser handles 100 to 130 clients, pushing the capacity limits of the profession. Simultaneously, the adviser workforce is aging, with half likely to retire within 15 years, according to Nathan Fradley from Fradley Advice.
Fradley suggests that bridging the staffing gap cannot be achieved merely by relying on new graduates or career changers progressing through the National Competency Assessment (NCA) role. Both Marshan and Fradley identify skilled migration as a critical solution to meet growing demand, with Marshan noting the inclusion of advisers in the government’s Skills Priority List and Core Skills Occupation List as a significant step forward.
The Financial Advice Association Australia proposes awarding five points on the skilled migration test for mandatory professional year completion, aiming to attract overseas talent. Migrant advisers bring valuable experience, including investment strategy and client engagement skills, and can serve Australia’s diverse populations better, particularly if multilingual.
Pedro Marin of Marin Wealth, who emigrated from Venezuela, underscores the gap in services available to non-English speaking Australians due to a shortage of bilingual advisers. Despite the potential advantages, the path to bringing international talent to Australia involves high costs and lengthy training times, dissuading many firms from considering overseas recruitment.
Marshan points out that nearly 47 per cent of firms are reluctant to employ international workers due to the associated expenses and administrative demands. Fradley concurs that the current educational standards in Australia pose challenges for large-scale implementation of skilled migration, suggesting the need for regulatory adjustments. There is a call to create pathways that preserve professional integrity while recognising international qualifications and experience.
Australia’s leading financial institution, the Commonwealth Bank of Australia, has openly criticised the Reserve Bank of Australia (RBA) for its calculations related to a proposed reduction in debit and credit card transaction fees. The RBA suggested that the reform would save Australian businesses $1.2 billion annually and benefit the majority of companies, a claim that the Commonwealth Bank strongly disputes. - read more
Amid a period of robust consumer spending, Australia's mortgage holders may face limited future interest-rate cuts. The Commonwealth Bank has observed Australians increasing their spending over the last six months, spurred by rising incomes, a robust job market, and previously lowered interest rates. - read more
The Compensation Scheme of Last Resort (CSLR) recently highlighted potential delays in compensation payments due to insufficient special levy funds. In July, the CSLR's proposed FY2025–26 levy plan allocated $67.29 million for financial advisers, surpassing the $20 million limit set for the subsector. This shortfall of $47.29 million prompted the Treasury to initiate a consultation in August to determine funding solutions for the excess levy. - read more
Before considering a loan application, it's crucial to have a clear understanding of your current financial position. Start by noting down all sources of income, including salary, any additional earnings, or government benefits. This will give you a comprehensive view of your financial inflows. - read more
Maintaining a good credit score is crucial for financial health. In Australia, a solid credit score can unlock better interest rates, higher credit limits, and improve your chances of loan approval. - read more
In the dynamic landscape of Australian finance, the emphasis on a robust credit score cannot be overstated. A favourable credit score serves as a gatekeeper to a world of financial opportunities, determining the ease with which individuals can access loans, the interest rates they will be eligible for, and even the prospects of securing a home in an ever-competitive market. As the average mortgage sizes surge to unparalleled heights, the significance of maintaining an advantageous credit profile escalates in tandem. - read more
Need Help Finding a Loan?
Find out now if you qualify and compare
rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without obligation. We respect
your
privacy.
Knowledgebase
Credit Score: A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of an individual.
