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Should You See a Financial Adviser?

A practical guide to who is most likely to benefit and when advice may not be worth paying for

My view: financial advice is valuable, but it is not automatically the right first step for everyone. The better question is not simply whether advice is 'worth it', but whether your finances are at a stage where professional guidance will create more value than it costs.

The answer is not the same for everyone

People often want a clean yes-or-no answer. In reality, whether you should see a financial adviser depends heavily on your financial position, your complexity, and what problem you are trying to solve. Someone living week to week, carrying high-interest debt, or running a cash flow deficit is in a very different position from someone with surplus income or a business structure to manage.

That distinction matters because advice tends to be most useful when there is something meaningful to optimise. If there is no spare capacity in the household budget, the immediate priority is usually not portfolio construction or long-term tax planning. It is stabilising your finances and creating a foundation.

When financial advice may not be the right starting point

If you are on a lower income, struggling to get ahead, or carrying expensive consumer debt, paid financial advice may not be the most effective first move. In those situations, the real issue is often cash flow rather than strategy. Increasing income (I know it's easier said than done), paying down credit cards, car loans or similar high-interest debt can deliver a more immediate benefit than entering a full advice relationship.

That does not mean you should do nothing. It simply means your best first step is lower-cost or free guidance, together with a focus on budgeting, debt reduction and rebuilding a savings safety-net.

In my opinion, this is where many people get the sequencing wrong. They look for advanced solutions before fixing the obvious ones. If the household budget is under pressure, debt is mounting, and there is no buffer, the smartest financial strategy may be the simplest one: reduce bad debt, increase savings and create breathing room.

The middle ground: receiving advice could still be useful, but the scope is important

For people in their 30s and 40s with a decent income, a mortgage, children and competing financial commitments, the position is often less clear-cut. These households may not need comprehensive ongoing advice, but they may still benefit from a one-off review to check whether they are on the right track.

That can be especially useful when the question is not 'manage my whole financial life' but rather 'am I making sensible decisions with the resources I have?' Sometimes the value lies in pressure-testing the plan, identifying blind spots and giving someone confidence and peace of mind that their current direction is sound.

Who tends to benefit the most

The strongest case for financial advice is usually where there is surplus cash flow, more assets at stake, or more complexity to manage. People with excess cash flow, business owners, those with more complex financial structures and individuals approaching retirement often stand to gain the most from professional guidance and structuring.

Once there is money available to deploy, the cost of getting decisions wrong becomes larger. The same applies when timing, structure, tax treatment, ownership, superannuation strategies, or retirement decisions start to matter. At that point, advice is not just about choosing investments — it's about coordinating all the moving parts in the right order.

Where advice often creates value

The value of advice is not limited to product selection or portfolio returns. A significant part of the benefit can come from behaviour. Having someone to challenge decisions, provide perspective during volatile periods or help maintain discipline when emotions start driving financial choices can be invaluable.

Estate planning is a good example for value creation. People regularly put it off because it feels distant, yet it is one of the areas where poor planning can create the most stress and unintended outcomes for the people left behind. The right choices in this area can save your family tens or hundreds of thousands of dollars.

Just as importantly, structure often matters more than the product itself. Knowing where to direct money, how to structure ownership, which strategies are appropriate and how tax outcomes can be improved can have a larger long-term impact than trying to identify the perfect investment with the greatest return.

DIY is possible, but that is not the full test

Many people can manage parts of their financial life themselves. However, the relevant question is not whether something is technically possible. It is whether you have the time, judgment and technical understanding to do it correctly, consistently, and within the relevant rules.

Where the consequences of getting things wrong are small, self-education may be enough. Where the stakes are high, complexity is rising, or multiple family, tax and estate considerations are involved, the margin for error can narrow quickly.

A practical way to decide

If you are financially stretched, focus first on stabilising your position. If you are broadly on track but want reassurance, targeted one-off advice may be worthwhile for you. If you have surplus income, significant assets, a business or complex structures, or retirement is three to five years away, financial advice is much more likely to deliver meaningful value.

The real question is not whether advice is universally worth it. It is whether the advice will be valuable for your current circumstances and will guidance materially improve your financial situation.

When advice is likely to be most useful

Situation Advice fit Why it may or may not help
Living week to week Usually low The immediate priority is often cash flow repair, budgeting and debt reduction rather than formal strategy. Financial Counsellors may be an option to help get some people out of a rut.
Mortgage, kids, moderate income Often selective A one-off review may help confirm whether the household is on track without requiring a full ongoing arrangement.
Surplus cash flow Often high Advice becomes more valuable once there are surplus funds available to structure, invest or allocate efficiently.
Business or complex finances Usually high Tax, ownership, timing and compliance issues tend to increase the value of professional guidance.
Approaching retirement Often high Retirement decisions are often irreversible or expensive to unwind if handled poorly.

How Much Super Do You Need to Retire Comfortably in Australia?

A practical guide to retirement targets, lifestyle trade-offs and the gap between benchmarks and reality

My view: retirement planning is often made to sound more precise than it really is. The better question is not 'what is the magic number?', but 'what standard of living do I want and how much flexibility do I want to buy myself?' That is where super balances start to make sense.

The retirement number is not one number

Australians love a single target. They want to know whether the answer is $500,000, $800,000 or $1 million. In practice, retirement is not a one-number problem. The number changes with housing status, health, travel ambitions, spending habits, whether you expect to rely on the Age Pension, and how much buffer you want for bad markets and rising living costs.

That is why I think benchmark figures are useful only when they are treated as guidelines rather than promises. They help frame the conversation, but they are not a substitute for an actual retirement plan.

What does a 'comfortable' retirement really mean

For most people, comfort in retirement is less about luxury than control. It means the home is maintained, the car is replaced when needed, private health cover is affordable, technology is current enough not to be a daily frustration, and discretionary spending exists without every outing feeling like a budgeting event.

A more modest retirement can still be stable and dignified, but the trade-offs are more obvious. Travel is narrower, leisure spending is lighter and there is less room for surprise costs. That distinction matters, because the gap between modest and comfortable is much larger than many people expect.

Current ASFA homeowner benchmarks at age 67

Lifestyle Annual spending target Super needed at retirement What it broadly implies
Modest – couple $51,630 p.a. $120,000 Covers essentials with some limited discretionary spending
Modest – single $32,930 p.a. $110,000 A basic but workable retirement for a homeowner with Age Pension support
Comfortable – couple $73,875 p.a. $730,000 More choice, better resilience and room for regular leisure spending
Comfortable – single $52,383 p.a. $630,000 A materially more flexible retirement than a modest standard

Why the Age Pension still matters

Many published super targets assume some Age Pension support. That is not a flaw in the modelling; it is simply how the Australian retirement system is designed. Super and the Age Pension often work together.

As at March 2026, the full Age Pension is about $1,200.90 per fortnight for a single person and $1,810.40 per fortnight combined for a couple. That income is meaningful, but it was never intended to fund a high-discretion lifestyle on its own. It is a support pillar, not the whole plan.

The scenarios people usually care about

Once the benchmark conversation starts, people usually move quickly from 'What is comfortable?' to more personal questions: what if I want to travel more and what if I don't want to rely on the government pension at all? Those are better questions because they expose the lifestyle assumptions sitting underneath the actual number.

The table below summarises the kinds of figures often discussed in retirement conversations. I would treat them as example scenarios, not universal targets, as everyone has different goals.

Illustrative retirement scenarios commonly quoted in advice discussions

Scenario Couple – super needed Single – super needed Comment
Moderate lifestyle, with Age Pension support $100,000 $100,000 Basic comfort with tighter limits
Comfortable lifestyle, with Age Pension support $695,000 $595,000 Older rule of thumb; current ASFA is higher
Comfortable lifestyle plus annual overseas travel $915,000 $760,000 Travel lifts the target quickly
Self-funded retirement, no Age Pension $1.77 million $1.23 million Independence is expensive
My opinion: most people should plan above the benchmark. If I were setting a retirement target, I would usually aim above the published comfortable benchmark rather than directly on it. Not because the benchmark is wrong, but because real life is messier than a benchmark. Unexpected expenses tend to come in waves. Appliances fail, insurance premiums climb, aged care risk looms in the background, market returns can be volatile and people rarely complain about having too much flexibility in retirement.

I believe a comfortable benchmark is best viewed as a minimum workable target for a homeowner with sensible expectations, not as an upper-end dream outcome. The moment you add regular overseas travel, a desire to self-fund, or any meaningful safety buffer, the required balance starts climbing quickly.

The two timing traps people overlook

The first trap is assuming access to super and access to the Age Pension happen at the same time. They do not. In many cases, super can be accessed from age 60 if a condition of release is met and from age 65 regardless of work status. The Government Age Pension age is currently from 67. That timing gap can materially change how much capital is needed in the early years of retirement.

The second trap is inflation. Figures quoted today are expressed in today's dollars and will move over time. Anyone planning to retire decades from now should focus less on the headline dollar figure and more on whether their current savings rate is likely to fund the kind of retirement lifestyle they want in real terms.

A better way to use retirement numbers

The most useful way to use these figures is as a filtering tool. If your projected balance is well below a comfortable benchmark, you likely need to adjust something: contributions, retirement age, spending expectations, or all three. If you are near the benchmark, the next question is whether your lifestyle goals are ordinary, ambitious or deliberately conservative. If you are well above it, the planning conversation usually shifts from adequacy to tax efficiency, pension strategy, estate planning and drawdown strategies.

In other words, retirement targets only become meaningful when they are connected to an actual lifestyle. That is why the question 'Can I retire yet?' can never be answered properly with a single number and financial advisers go into great depth to determine what's right for you.

Sources

  • ASFA Retirement Standard Summary, February 2026: homeowner benchmarks for modest and comfortable retirement at age 67
  • Services Australia, Age Pension rates current from 20 March 2026
  • Moneysmart: access to super generally from preservation age if retired and from age 65 regardless of work status
  • Amounts are current-source figures and may change over time with indexation, inflation and policy changes

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