Thesis
Drivers of Financial Advice Seeking and Wellbeing in the Australian Retirement Planning Context: Theory, Evidence, and Implications (Citation and Abstract only)
Southern Cross University
Doctor of Philosophy (PhD), Southern Cross University
2022
DOI:
https://doi.org/10.25918/thesis.528
Metrics
13 Record Views
Abstract
Professional financial advice could play a critical role in achieving consumer outcomes in a landscape of progressively complex financial markets, where Australians are increasingly expected to prepare for their retirement and improve their financial wellbeing (FWB). Given that the ultimate goal of policymakers is to foster an environment that encourages professional financial advice seeking and enhances the FWB of Australians, this research aims to: (1) identify what internal factors hinder or drive Australians’ propensity to seek financial advice (PTSFA) and FWB; (2) investigate how these internal factors are interrelated; and (3) examine to what extent PTSFA and FWB share the same internal barriers and drivers. The need to better understand these internal factors arises from their practical relevance. In situations where PTSFA and FWB share the same internal barriers, policies targeting supply-side barriers to promote and improve access to unbiased financial advice may not be an effective solution to the detrimental effects of poor consumer financial literacy and decision-making. Building on the five-stage financial help-seeking model (Grable & Joo, 1999, 2001; Joo & Grable, 2001) and Huston’s (2010) FWB framework, this study proposes a conceptual framework of shared behavioural and psychological factors known to influence PTSFA and FWB.
Structural equation modelling and survey data from 1,297 Australian adults are used to test the relationships within the proposed conceptual framework. The study finds that narrow-scope trust, future time perspective, retirement savings adequacy, and locus of control are directly associated with PTSFA. In contrast, system trust is indirectly related to PTSFA through narrow-scope trust. Further, the study finds that retirement savings adequacy, financial risk tolerance, self-efficacy, future time perspective, locus of control, and system trust are directly associated with FWB. In addition to these direct effects, the study observes that future time perspective, locus of control, subjective financial knowledge, and system trust are indirectly related to FWB through their effects on retirement savings adequacy. These findings suggest that out of the seven hypothesised shared factors, future time perspective, system trust, retirement savings adequacy, and locus of control affect PTSFA and FWB simultaneously. However, none of these internal factors was a shared barrier to PTSFA and FWB. The most important practical implication arises from the lack of shared internal barriers, thereby suggesting that removing the supply-side barriers to promote financial advice may be an effective tool in encouraging the uptake of financial advice to improve consumer FWB.
Details
- Title
- Drivers of Financial Advice Seeking and Wellbeing in the Australian Retirement Planning Context: Theory, Evidence, and Implications (Citation and Abstract only)
- Creators
- Steffen Westermann
- Contributors
- Scott Niblock (Supervisor) - Southern Cross UniversityJennifer L Harrison (Supervisor) - Southern Cross UniversityMichael A Kortt (Supervisor) - Southern Cross University
- Awarding Institution
- Southern Cross University; Doctor of Philosophy (PhD)
- Theses
- Doctor of Philosophy (PhD), Southern Cross University
- Publisher
- Southern Cross University
- Identifiers
- 991013325628302368
- Copyright
- © Steffen Westermann 2022
- Academic Unit
- Faculty of Business, Law and Arts
- Resource Type
- Thesis