We know that getting financial advice in Australia can be confusing. It’s a heavily regulated environment and there are different rules for different types of advice. We sat down with UniSuper financial adviser Melinda Brown to get the facts.
Do I need to see a financial adviser?
There are no rules about seeing an adviser. If you’re looking for help with planning your retirement, or want to know more about insurance, there are different types of financial advice available.
We know that managing your finances can be stressful. An adviser can provide peace of mind and help you with some big decisions to make sure you are making the most of all the opportunities that may be available to you.
What does an adviser do?
Financial advisers can provide you with personal financial guidance and advice on a range of topics. They can help you with financial advice such as budgeting, investing, retirement planning, wealth management, superannuation, tax planning, and insurance.
An adviser can help you gain control of your finances and give you the confidence to work towards your goals. Many people find that professional financial advice gives them the reassurance they are making the most of all opportunities available to them as well as getting a helping hand when it comes to making key decisions about their finances.
What is the difference between comprehensive advice and general advice?
Comprehensive advice is prepared specifically for you and provides direction as to what you ‘should do’ in relation to your needs and objectives. Sometimes it’s referred to as ‘personal advice’. The terms are interchangeable and mean the same level of advice.
General advice is general information about what you ‘could do’. It is not personalised or specific to you and does not consider your situation and needs.
What qualifications do financial advisers need?
In Australia, there are professional standards that require financial advisers to:
- have an approved qualification – generally the completion of an approved bachelor’s degree
- pass the financial adviser exam
- participate in 40 hours of continuing professional development (CPD) each year
- comply with the Financial Planners and Advisers Code of Ethics 2019 (Code of Ethics) – a set of principles and core values in the areas of ethical behaviour, client care, quality process and professional commitment.
Do I need a financial adviser to manage my super?
Superannuation is likely to be one of your biggest financial assets. You can manage your super without an adviser, however an adviser can help you maximise your retirement savings and make the most of various tax incentives available within super. You will need to make some key decisions about your super in the lead up to retirement, and when you retire. Financial advice can help guide you to make the most appropriate decisions for your needs.
Is it worth seeing a financial adviser?
I may be biased, but I would say yes! An adviser’s guidance can be incredibly valuable at key moments in your life from a financial perspective, but also the peace of mind and reassurance they can provide around your financial circumstances, how to meet you goals and maximise your personal situation.
Can you tell me what to do with my money without paying for advice?
Sadly not. There are lots of rules about what an adviser can and cannot say, depending on their qualifications and type of licence. Personal advice in relation to what you should do given your own personal circumstances must be provided in writing by a licensed financial adviser. Otherwise, you can seek general advice which can provide some general guidance about what you could do.
Can you tell me how much money I’ll need for retirement?
Unfortunately, not. I’d love to be able to give you a specific figure, but the reality is, it really depends on a range of factors like your budget and the lifestyle you want. Advisers spend a lot of time with clients discussing their budget and the income they need to cover both their needs and wants when they’re no longer receiving a salary. This really forms the foundation of retirement planning. It can also be useful to refer to the Association of Superannuation Funds Australia (ASFA) guidelines which provides a breakdown of how much a comfortable or modest lifestyle costs for both singles and couples. It’s called The ASFA Retirement Standard.
Once we know how much income you need each year, we can then provide analysis on the amount of money you’ll need in retirement, also allowing for any Centrelink benefits you might be eligible for now and in the future.
If you want to get a better handle on your money, UniSuper has a Retirement Savings Calculator to help you estimate your retirement savings, and a Retirement Income Calculator to see how much income you could have in retirement.
Can an adviser help with things other than super?
Definitely. We can provide advice on a range of things including investments outside of superannuation - like managed fund portfolios and investment bonds.
We can also provide advice on insurance both in and outside of superannuation, aged care, and debt and wealth management.
What are the main benefits of getting financial advice?
Planning is essential when it comes to your finances. A financial adviser can help you map out your goals and show you how to achieve them.
An adviser can help prepare you and your family for the years ahead. They can:
- Help you save money and grow your assets
- Reduce your mortgage quicker
- Boost your super with tax-effective strategies
- Protect your income
A financial adviser can guide you through various investment options and outline strategies to help build your wealth through assets like shares, property, term deposits and superannuation. They will also assist you in finding the balance of risk and return that’s right for you.
What to expect when meeting with a financial adviser
When you meet with an adviser, they’ll ask you a range of questions to get a better understanding of your goals and financial position. It’s important to consider your main goals and objectives before the meeting. The more detail you have as to your current financial situation –super, assets, debts, income and expenses – the better the meeting with the adviser, as they’ll be able to get an understanding of your needs, objectives and possible next steps.
Can I have the cost of my advice taken out of my super account?
That depends. The cost of advice in relation to super and retirement planning can be deducted from your UniSuper account if you wish. However, if you also receive advice in relation to non-super investments, this cost cannot be deducted from your super.
What’s included in the cost of financial advice? Are there other fees?
There is a cost for comprehensive (or personal) advice. This fee covers the cost of all our meetings, preparation of a written Statement of Advice, assistance with the implementation of forms in relation to the advice provided, and 12 months of service as it relates to the advice provided.
What is a Statement of Advice and when is it needed?
A Statement of Advice (SOA) is a document which records all our recommendations to meet your goals and objectives and is tailored to your personal circumstances. This document outlines the reasons for the recommendations, the benefits of the recommended strategies, and discloses all relevant fees and charges for the advice and products recommended to you. To meet our legal obligations, all personal advice must be provided in writing, and this takes the form of the SOA.
How often do financial advisers meet with clients?
That depends. We may see some clients only once; others may come back for reviews every 1 or 2 years. There’s no obligation to return for a review, however many clients choose to see us again so they can check in and ensure they’re maximising the various opportunities and strategies available. People’s circumstances change, there can be changes to legislation, products and investment markets which mean it’s important to review the advice previously provided.
How long does it take to get a financial plan?
Once we’ve met, and you’ve agreed to proceed with personal advice, it generally takes 3-4 weeks for us to prepare your Statement of Advice. We’ll then have a meeting to present and discuss the recommendations.
Do UniSuper advisers receive commissions?
No. UniSuper Advisers do not receive any commissions. We charge a fee for service based on an hourly rate.
Are you ready to talk to an adviser?
Our award-winning advice team can help—call our team on 1800 331 685 or talk to one of our financial advisers.
UniSuper Advice is operated by UniSuper Management Pty Ltd ABN 91 006 961 799 (USM), which is licensed to provide financial product advice. USM is also the administrator of the fund UniSuper ABN 91 385 943 850 (UniSuper). UniSuper Limited ABN 54 006 027 121 is the trustee of UniSuper.
The information is of a general nature and doesn’t consider your personal circumstances. Before making decisions, you should consider whether the information is appropriate for your circumstances otherwise seek financial advice.
Melinda Brown
Melinda has worked in the financial services industry since 2001 and joined UniSuper in 2010. She has worked in a variety of organisations including banking and retail superannuation providers.
She believes that seeking advice is really a financial education service. She takes pride in explaining complex topics and strategies in ways that are easy to understand.
She is passionate about helping people feel more confident about their future and aims to provide guidance on achieving better financial outcomes. Melinda enjoys seeing the confidence that can come from knowing her clients have strategies to help them to be financially secure in their future.