The proportion of self-managed super funds using a financial planner has declined for the eighth successive year, with only 36 per cent using a planner in the past 12 months.
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This is despite the trustees saying they want advice on pension strategies, building income streams and wealth preservation. Almost 40 per cent said they have unmet advice needs.
The results are from a survey of 4000 SMSF trustees by Vanguard and Investment Trends that is conducted each year.
In 2007, 62 per cent of trustees said they used the services of a financial adviser. By 2011, the proportion using an adviser had dropped to 49 per cent.
Of course, many trustees say they do not need advice as they say they can manage their own financial affairs. Of the trustees who say they want advice, the main reason they give for not using a financial adviser is a lack of confidence in adviser expertise.
It is probably no coincidence that the fall-off in the use of advisers has occurred at the same time as a string of financial planning scandals.
These scandals, which also included some accountants, include Storm Financial, Opes Prime, Westpoint, Great Southern, Timbercorp and Banksia Securities.
The Financial System Inquiry, whose final report was released late last year, estimates these collapses involving "poor advice, information imbalances and exploitation of consumer behavioural biases" affected more than 80,000 people with $4 billion in losses after compensation and liquidator recoveries.
The subsequent scandals at the advice arms of the Commonwealth Bank, National Australia Bank and Macquarie Bank and the advice problems at ANZ have also tarnished the reputation of financial advisers.
