Australian advisers have been under mental strain in the past few years, with as many as two-in-five considering leaving the industry due to stress and burnout, a report last year found.
The alarming results from the e-lab’s Dr Adam Fraser, Deakin University’s Dr John Molineux and AIA showed compliance demands and the regulatory environment were among the key stressors contributing to advisers’ poor mental health.
Figure 1: Work tasks undertaken by Financial Advisers
Source: Australian financial advisers wellbeing report 2021
The authors of the original report have since turned their attention to New Zealand to better understand how Kiwi advisers are faring. Comparing the results from the two studies offers some insights into the pressures here at home.
Aussie vs Kiwi mental health – what the reports show
Advisers in both New Zealand and Australia had higher mental health risk scores than the general public in their respective countries. However, a greater proportion of Aussie advisers were in higher risk groups. Around 41 per cent of New Zealand advisers recorded moderate, high or very high mental health risk scores, while 56 per cent of Australian advisers had moderate or high to very high risk scores.
Compared with their Australian counterparts, New Zealand advisers reported better work/life balance and less overload, but 52 per cent of the surveyed Kiwis still said they struggled to keep up with their workload. Half of the New Zealand advisers said they felt stressed or burnt out, which was 14 per cent lower than the proportion of stressed Australian advisers.
Notably, Kiwi advisers were 22 per cent less likely to leave the profession, 21 per cent less likely to need or seek medical care due to work pressure and 19 per cent less likely to have been told by their doctor they were in a high-risk category for stroke and/or heart disease.
As the authors noted, there are some important differences between the adviser landscapes in Australia and New Zealand. Australia has more robust education standards and tighter consumer protection regulations. Also, ARdata analysis indicates the departures from the Australian advice universe have left roughly one Aussie adviser per 1300 people, compared with one New Zealand adviser per 477 people.
As a final word, the authors of the more recent Kiwi study said there was concern among survey participants about the regulatory regime beyond the ditch replicating Australia’s example. They warned against this.
“In order for this profession to flourish in New Zealand, the regulators in New Zealand should be careful not to follow the same path taken in Australia,” the report stated.
If you or a loved one needs support, you can always call Lifeline on 13 11 14 or Beyond Blue 1300 22 4636.
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Comments1
"Yeah but NZ only have 3% contributions into Kiwisaver, don't have a great income protection policy, are 5-10 years behind where we are as a profession and by all reports their property market is likely going to collapse in 1-2 years time. I am happy to remain in Australia thankyou very much!"
Chris 17:42 on 23 Mar 22