Retirement at risk: Urgent action needed to save financial advice sector

• Number of financial advisers has almost halved in just six years
• Retirees could be exposed to more high-risk investment decisions
• Government must cut red tape to reverse the exodus of advisers

The mass exodus of financial advisers risks exposing millions of Australians on the cusp of retirement to making high-risk investment decisions.

Australia’s largest accounting body, CPA Australia, says that unless urgent action is taken to reverse the increasing shortage of advisers, too many Australians will start their retirements without receiving the professional advice they need to ensure they have secure and reliable retirement incomes.

CPA Australia’s Superannuation Lead, Richard Webb, says a mountain of red tape is a key contributor to financial advisers quitting the profession – the number listed on the Financial Adviser Register has almost halved in six years, down from 26,500 in 2019 to just 15,300 as of July 2025.

As noted by CoreData and Conexus Financial research this week, an increasing number of Australians nearing their retirement plan to reinvest their superannuation savings outside the super sector. This includes pouring their money into speculative and potentially volatile investment options such as cryptocurrency, gold and property.

“More than 2.5 million Australians will retire in the next decade – and many will be shocked to discover there are fewer than 15,300 professional financial advisers to assist them with some of the biggest decisions of their lives,” Mr Webb said.

“With the increasing propensity of retirees to leave their super funds and seek higher investment returns through risky investments, expert financial advice is needed now more than ever.”

CPA Australia urges the federal government to prioritise a review of the regulations and costs forcing advisers out of the profession, as well as deterring new entrants.

This includes finalising:

• The post-implementation review of the Compensation Scheme of Last Resort
• Updated financial advice education standards
• Changes to the financial advice best interest duty
• Clarifying the role of the new class of adviser

“Investing retirement savings is complex, and carries with it intricate tax and super settings, asset tests and administrative burdens,” Mr Webb said. “However, getting the right advice is only becoming harder to find and more expensive.

“The federal government must take action to help alleviate the burden of regulation and costs faced by advisers before the shortage becomes an irreversible crisis.”

Mr Webb said the tightening of regulations following the Hayne Royal Commission was intended to improve outcomes for clients, but the sharp decline in the advice sector has proved an unfortunate consequence.

“The cumulative effect of the regulatory burden imposed on the profession in recent years has demoralised advisers to the point where many are now walking away from businesses they grew from the ground up,” Mr Webb said.

“Government needs to work constructively with the profession to understand these challenges and begin to address them as quickly as possible.

“Superannuation funds could also do more to help prepare their members for retirement – as required by the Retirement Income Covenant – but their ability to make appropriate advice solutions available is diminished by the exodus from the profession.”