Australia’s Financial Adviser Shortage Worsens

Demand for financial advice in Australia is rising due to market volatility, possible tax changes and upcoming reforms to the superannuation system. However, there are fewer financial advisers available, raising concerns about whether everyday Australians can still access affordable and reliable financial guidance. Although regulators and policy-makers have indicated support to revive the sector, adviser numbers keep falling, which is widening the gap between supply and demand.

Not long ago, there were more than 25,000 licensed financial advisers in Australia. As of July 2025, that number has dropped to 15,488, which is even lower than the total recorded just one year earlier. This decline has occurred despite increased demand as more Australians seek expert advice during major life events and in an increasingly complex financial environment. At the same time, progress on proposed reforms has slowed and stricter qualification requirements set for 2026 are pushing experienced advisers to leave the industry.

Financial firms that serve high-net-worth individuals are growing, and low-cost robo-advisers are becoming more popular with beginner investors. Yet most Australians find themselves in what industry experts call the “missing middle.” These people have needs that go beyond basic advice, yet they do not meet the wealth or income levels required by premium firms. The average cost for comprehensive advice is now about $4,000 per year, which prices out a large number of potential clients.

The causes appear to be structural. Since the Hayne Royal Commission led to banks withdrawing from financial advice, the supply of advisers has continued to shrink. Large superannuation funds were expected to help bridge the gap, but they have yet to deliver, especially with legislation still pending in parliament. Education options for aspiring advisers are also decreasing. In 2020, there were 39 university degree programs in financial advice, but now there are only 24.

For investors trying to make sense of their financial options, the best strategy might be to consider premium advice services, if they can afford it, or use more affordable passive investment platforms. Ironically, advisers are more willing to work with clients who qualify as “sophisticated” investors, meaning they have assets of at least $2.5 million or earn $250,000 annually, because these clients carry lower compliance costs. This results in a system that favours the wealthy and leaves many ordinary Australians without access to personalised financial advice, even as their need for support continues to grow.

Source: The Australian, Rainmaker Group, Professional Planner