The world has been significantly reshaped by the COVID-19 pandemic, ushering in what many refer to as the “new normal”. This has had profound implications on financial planning, particularly in Australia.
The New Normal in Financial Planning
In the new normal, financial planning has evolved to meet the changing needs of clients. Three trends define financial planning in today’s new normal1:
- Accelerating client demand for holistic planning: Financial planners are now addressing a person’s entire financial situation, rather than only focusing on a single area such as investments.
- Growing client appetite for financial news and information: Clients are increasingly seeking out financial news and information to make informed decisions.
- Increasing acceptance of virtual meetings: The pandemic has accelerated the shift towards virtual meetings, making financial advice more accessible.
The Australian Financial Planning Landscape
The financial planning landscape in Australia has seen significant changes. The number of registered advisers has decreased, partly due to new educational requirements under the FASEA exam. Moreover, there has been a shift away from institutionally aligned licensees towards non-aligned licensees.
Meeting the Challenges
Financial planners are adapting to these changes to best serve their clients. They are taking a holistic approach to a client’s finances, helping them navigate through economic uncertainty. They are also leveraging technology to conduct virtual meetings, making financial advice more accessible.
Conclusion
In the new normal, financial planning is more important than ever. By staying informed and adapting to changes, financial planners can help their clients navigate through these challenging times and reach their financial goals.