Adviser Report reveals increasing wealth
In the midst of the generation of Avalanche that is retiring, advisor reviews published their 7th annual Australian Financial Advice Landscape Report – 2025, earlier this month, which emphasized some fascinating shifts in the advisor -ecosystem and in the relationship between customers and financial advisers.
The report reveals an industry at a crucial point – stable in the number of adviser, but confronted with persistent challenges in accessibility, demographic change and evolving consumer expectations.
Consumers and investors
Stagnating advice penetration: Only 10.4 percent of Australians receive professional advice. That has been unchanged since 2024, despite an increase of 189 percent in advisory investigations since 2020, and it suggests that structural barriers prevent those who are interested in receiving advice with a consultant.
Shifting priorities: The pension planning remains dominant (74 percent of the consultant-reported customer priorities), but the interest in cryptocurrency (up to 30 percent), intergenerational wealth transfer (39 percent) and the insurance (33 percent) increases.
Perhaps somewhat predictable, the investing interest in the environment, social and administration) has decreased compared to the peak of 2023.
Wealth transfer Surge: 41 percent of customers now expect to transfer more than $ 500,000 to the next generation – an increase of 31 percent in 2024 – encourages the demand for integrated strategies for estate, tax and family management.
Involvement trends: Returning relationships are good for more than three -quarters (77 percent) of customer involvement. In the meantime, the average customer portfolios have grown to $ 758,000, and advisers are increasingly focusing on high -quality professional niches.
Advisers
Employees stable: The number of adviser was leveled in Australia after years of contraction 15,500. More than 70 percent of those advisers have more than ten years of experience, of which 37 percent have more than two decades. This reflects a deep pole of expertise, but hears future follow -up problems.
Business model shift: 78 percent of the advisers are now active among licensors in private ownership, which reflects the decisive step of the industry from institutional coordination. In an improving sign for customers, as well as a sign of individual business stability, strategic business optimization replaces reactive restructuring by independent advisers.
Profitability and reimbursements: Median consultancy costs increased by 18 percent in 2025 to $ 4,668, an increase of 67 percent in five years, powered by higher service costs and a focus on customers with a higher value. An increase of 67 percent in five years is equal to an annual growth rate in costs of 10.8 percent.
Market and technology developments
Standardization of separately managed account (SMA): The launch of the SMA reporting stand deals with the lack of uniform data of the $ 300 billion that the sector of the accounts has managed on uniform accounts, which improves transparency and efficiency prior to a forecast of $ 3.5 trillion interpretation transmission transfer.
Technology -acceptance: 74 percent of the practices used or intended to use artificial intelligence (AI), with advanced adopters that reach margins up to 29 percent. Applications include AI-driven insurance technical, document automation and predictive analyzes, improving scalability and service supply.
Strategic implications
Advisors who coordinate the offer for younger Australians, enclose strategies for family capital transfer, deal with emerging investment themes and use technology for efficiency standing to establish a substantial market share. Follow-up planning, Advice for Affordability and addressing the 90 percent of Australians without a consultant remains urgent strategic imperatives, whereby the latter can be resolved one of the personal hope by AI-divided solutions.
Roger Montgomery is the founder and chairman of Montgomery Investment Management. Roger has more than three decades of experience in fund management and related activities, including stock analysis, stock and derivative strategy, trade and effects. Prior to the establishment of Montgomery, Roger positions in Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also the author of the best -selling investment guide for the stock market, value. Aabel-Hoe to appreciate the best shares and buy them for less than they are worth.
Roger regularly appears on television and radio, and in the press, including ABC Radio and TV, the Australian and Ausbiz. View upcoming media performances.
This message was contributed by a representative of Montgomery Investment Management PTY Limited (AFL No. 354564). The main purpose of this message is to provide factual information and not to provide financial product advice. Moreover, the information provided is not intended to give a recommendation or opinion about a financial product. However, each comments and opinion of opinion can only contain general advice that has been drawn up without taking into account your personal objectives, financial circumstances or needs. Therefore, before acting on the basis of one of the information provided, you must consider the suitability in the light of your personal objectives, financial circumstances and needs and you must consider requesting independent advice from a financial adviser if necessary before you make decisions. This message excludes specific personal advice.
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