Australian financial advisers are suffering from poor mental and physical health, with many blaming high regulatory and compliance demands at work as a key factor in their stress levels, according to new research sponsored by life and health insurer AIA Australia.
Researchers Dr Adam Fraser, founder of The e-lab, and Dr John Molineux from Deakin University conducted the study for AIA Australia in late 2020 to recognize the key challenges endured by financial advisers.
The results provided some alarming insights into the advice industry, while also highlighting the importance of the insurance industry’s role in assisting and supporting advisers as they navigate the high demands of the job.
Over 700 financial advisers participated in the study, 82% of which found regulatory and compliance requirements to be highly or very highly stressful. 77% of the participants also felt high levels of frustration, despite the study revealing that advisers generally found purpose and meaning in their work.
“We did this research to help the people who invest so much time and energy into improving the financial security of Australians,” said Fraser. “Concerningly, we found that advisers had the lowest scores in areas of wellbeing, mental and physical health and higher scores in terms of stress, burnout and work overload, than any industry we had previously studied.”
Other key findings showed 73% of financial advisers experienced high levels of burnout from stress; 67% experienced some level of depression; and 61% had poor sleep due to stress.
Alarmingly, 33% of participating financial advisers sought medical care to manage stress-related health symptoms, and 25% were advised to be at high-risk for heart disease or stroke by their medical practitioner.
While the research revealed alarming insight into the experience of financial advisers, it also showed how some participants thrive by maintaining a positive work/life balance, by exercising mindfulness and doing regular physical activities, as well as relying on collegiate support.
Damien Mu, CEO and Managing Director of AIA Australia and New Zealand commented: “Although we have identified that there are several factors impacting the health and wellbeing of financial advisers, it is positive to note that there are many professionals in this field who are thriving. We hope that this research is informative and inspires positive change to improve the advice industry for the better.”
