Asking the right questions when choosing a financial adviser

ESSSuper - 03 Dec 2024

Professional financial advice can make a world of difference in helping you prepare for a great retirement.

When it comes to choosing a financial adviser, it's important to make sure you get the quality of advice you need, providing you with confidence and peace of mind.

For ESSSuper members, this can be particularly important, because our fund is different to most others, and there are unique benefits that our members can access.

Read on to make sure you're asking the right questions when you choose an adviser.

1. What are some of the fundamentals when deciding to work with an adviser?

The Financial Advice Association Australia's guide to choosing a financial planner¹ sets out some of the key questions to consider, including:

• What qualifications do you have?

  Make sure any adviser you consider has the necessary qualifications — check their level of education and their expertise in providing financial advice.

• What is your speciality?

  Financial advisers often focus on specific areas. Some may only be qualified to provide advice in limited areas. Confirm that their expertise aligns with what's important to you (i.e. superannuation or retirement planning).

• How are you licenced?

  Make sure your financial adviser is employed by a firm with an Australian Financial Services (AFS) Licence, issued by the Australian Securities and Investments Commission (ASIC) and ask for a copy of their Financial Services Guide.

2. Does your adviser understand ESSSuper?

Not all super funds are alike, and ESSSuper has unique rules, benefits, and structures that impact your investment and retirement options.

ESSSuper has a team of licensed advisers who understand the complexities of ESSSuper benefits and are ideally placed to provide expert personal advice. This is very important as our schemes are very complex, different to most other super funds and have nuanced rules that can impact a member's entitlements. We have seen examples where our ESSSuper advisers pick up these nuanced details that can be missed by other advisers.

If you are considering another adviser, you may want to ask them if they have any experience with ESSSuper entitlements. ESSSuper financial planners bring an in-depth understanding of our products and services. This means they're well-positioned to provide advice that aligns with your goals and maximises our fund's benefits.

3. Do you know what you'll be charged and the impact on your super?

Financial advice often comes with different fee structures. Some advisers charge a flat fee, while others might take a percentage of your investments, or apply ongoing yearly charges.

Make sure you fully understand the costs and potential impact on your super balance over time. Advisers should always be open about how they're compensated and how the amount you pay could affect your overall financial plan.

It's also a good idea to compare their fees with those of our ESSSuper Member Advice team, as there can be significant differences.

They're not-for-profit and charge only the fees necessary to cover the costs of providing the advice service.

4. Does your adviser have a proven track record?

A 2024 survey of more than 11,000 Australian super fund members by research firm Investment Trends² found that ESSSuper members who received financial advice were the most satisfied of any group in the survey.

Our strong commitment to helping our members build their super is evident in the satisfaction of members who've received advice. Our Member Advice team received a 91% satisfaction rating³ in the 2024 financial year, highlighting the confidence members feel in our advice services.

Next steps

If you're ready to seek financial advice, make sure you're considering these key questions.

If you'd like to explore how ESSSuper's financial advisers can support your goals, get in touch today to start your journey toward a stronger, more secure financial future.

1. Financial Advice Association Australia, All you need to know about choosing a financial planner.

2. The 2024 Investment Trends Super Member Engagement Report is based on an online survey of an average of 11,404 members across multiple super funds. Refer to investmenttrends.com and esssuper.com.au/awards for more information.

3. Evolved Human Listening market research platform: 1 July 2023 to 30 June 2024. For more information visit: humanlistening.com

Emergency Services Superannuation Board (ABN 28 161 296 741) (ESSB) is responsible for administration of the Emergency Services Superannuation Scheme (ABN 85 894 637 037) (ESSSuper).

ESSSuper Financial Advisers are authorised representatives of Link Advice Pty Ltd (Link Advice). Link Advice holds a current Australian Financial Services Licence No. 258145 and is responsible for the financial services provided to you. ESSSuper has an arrangement with Link Advice Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Link Advice a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Link Advice, or are responsible for the advice and actions of Link Advice.

Investment returns are not guaranteed. All investments carry risks and past investment performance gives no indication of future performance. Benefits in ESSSuper's Accumulation Plan, Income Streams and Beneficiary Account products are not guaranteed or underwritten by the Victorian Government or ESSSuper, and ESSSuper does not come under the jurisdiction of the Australian Financial Complaints Authority. ESSSuper comes under the jurisdiction of the Victorian Civil and Administrative Tribunal. ESSSuper is an exempt public sector superannuation scheme, and is not regulated by APRA or ASIC, but is governed by Victorian legislation.

The information contained in this article is of a general nature only. It should not be considered as a substitute for reading ESSSuper's Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by contacting us.