PICTURE: SUPPLIED
Research conducted by the Bureau of Market Research in partnership with Momentum revealed that households working with a financial adviser accumulate investment portfolios 9.5 times larger on average than households without professional guidance. This is a striking testament to the long-term value of financial advice.
The findings in the Momentum Group Financial Advice Research Report 2025 were presented at a media roundtable in Johannesburg by Professor Carel van Aardt, followed by a panel discussion including the CEO of Momentum Consult, Hannes van den Berg, and Head of Wealth Management at Momentum Financial Planning, Therese Grobler. Broadcaster Dan Moyane facilitated the panel discussion under the theme: “Your freedom needs your financial independence.”
“We deliberately chose the freedom weekend to have this conversation because freedom is not enjoyable if we don’t have financial independence and stability,” said Nontokozo Madonsela, Group Chief Marketing Officer at Momentum Group. “We need to make sure we have the right financial products and services that are unique to you and your family’s unique context so that we set up the right legacies that will go on beyond us.”
The report indicated that only 9% of South African households have a professional adviser, and households that advised themselves had the lowest wealth per household.
At a time when financial uncertainty remains a top concern for many South Africans, the data presented by Professor van Aardt highlighted the transformative impact that expert advice can have on personal wealth.
“What a lot of people also don’t understand is that financial advice is not just about growth but also about risk mitigation, which is incredibly important when it comes to finances,” said Prof. van Aardt.
The insights come amidst an increasing demand for reliable financial guidance, with more households seeking long-term financial support. As South Africans contemplate financial freedom, financial independence emerges as a crucial aspect of this journey, with financial advice playing a central role rather than being a luxury.
“We, as an industry, also need to be able to influence literacy even in schools because, truthfully, the youth are the economy of the future. But apart from that, the earlier you start with your financial advice journey, the better. As soon as you start working, that would be the best time to engage a financial adviser,” said van den Berg.
According to the report, individuals tend to seek more advice when facing greater uncertainty and more difficult tasks. They are less likely to seek advice when they fear that doing so might make them appear incompetent.
According to Professor van Aardt, part of this is because the primary reason why a lot of people go for financial advice is pain – there are pain points in their lives.
“Another reason is when there are regulatory changes, we saw, for example, with the introduction of the two-pot withdrawal system, a lot of people wanted to engage advisers to find out how to draw,” said Prof. van Aardt.
Good financial advice isn’t just about numbers, it’s about having someone in your corner who understands your goals and helps you make smart, confident financial decisions. Consumers expect financial advice to be practical, transparent, and results-driven.
“Context is everything regarding your journey with a financial adviser. Every client is different, and a professional financial adviser will provide appropriate advice for your unique circumstances, said Grobler. “We need to dispel the myth that financial advisers tick a box with regards to their consultations and they have to meet some quota, they meet with you until they give you what is required.”
Professor van Aardt added that the research showed that at times there is a disconnect between what consumers are looking for and what financial advisers are providing, emphasizing context will assist the industry in getting the supply and demand equation right.
Also see: Unlock your path to wealth with tailored financial guidance
