Many Australians searching for ‘financial planner vs financial adviser’ often wonder if they mean the same thing. While both roles sit within the broader advice profession, they serve different purposes, which can lead to confusion when someone is trying to choose the right support.
The simple way to look at it is this: every financial planner is a type of financial adviser, but not every adviser provides full planning services.
In Australia, the difference is not about licensing or regulation — both financial advisers and financial planners must meet the same ASIC education and ethical standards. The distinction is generally about scope of service rather than legal status.
Understanding this distinction helps you select guidance that suits your goals, whether you want long-range direction or help with a specific financial matter.
What is a Financial Adviser?
A financial adviser is a licensed professional who helps you plan and manage larger financial decisions throughout different stages of life. They work with you to set goals that feel achievable and support you in shaping a path toward them. If you’re falling behind or circumstances change, an adviser can help you adjust your approach or build goals that better match your situation.
Financial advice tends to matter most when life shifts in a big way, such as welcoming a new child, dealing with retrenchment, planning for retirement, or sorting through an unexpected inheritance. During these changes, it’s easy to feel unsure about the next step. The right adviser can help you sort through your options and turn a stressful moment into a more organised, manageable path forward.
A financial adviser can help you:
- Set financial goals: Create targets that suit your lifestyle and future plans
- Build a strategy: Map out steps to reach those goals over time
- Manage investments: Choose products suited to your risk appetite and objectives
- Review your progress: Check whether you’re tracking well and adjust when needed
- Understand your situation: Break down complex decisions into manageable choices
What is a Financial Planner?
A financial planner is also a licensed financial adviser. In Australia, there is no separate legal category that distinguishes a financial planner from a financial adviser. In practice, the term “financial planner” is commonly used to describe advisers who focus on broader, long-term financial planning rather than advice limited to a single issue.
Like all licensed financial advisers, financial planners must meet ASIC education and ethical standards. Many choose to pursue additional qualifications such as CFP® certification, but this is not required to use the title. Their role centres on building a strategic plan that reflects your current position, long-term aims, and comfort with risk.
Financial planners take a wide view of your circumstances and bring together multiple areas of your finances so everything works toward the same goals. This approach suits people who want a coordinated plan rather than guidance limited to a single decision.
A financial planner may help you:
- Developing a budget: Set spending and saving targets that match your lifestyle
- Creating an investment plan: Build a portfolio suited to your goals and risk level
- Analysing insurance needs: Identify cover that supports your financial safety net
- Planning for retirement: Model income needs and map out retirement strategies
- Creating an estate plan: Align your wishes with legal and financial requirements
Financial Planner vs. Financial Adviser: How They Differ
| Financial Adviser | Financial Planner |
|---|---|
| Licensed under ASIC and AFSL | Licensed under ASIC and AFSL |
| May provide targeted or issue-specific advice | Typically provides comprehensive financial planning |
| Often engaged for specific decisions (e.g. super rollover, insurance) | Engaged for integrated long-term strategy |
| May offer one-off or occasional advice | Usually provides ongoing review and structured planning |
| Suitable for straightforward or single-issue needs | Suitable for complex or multi-layered financial situations |
While the two titles sit within the same profession, the way they work and the breadth of their guidance can be quite different. A financial adviser can support you with targeted matters such as investment choices, insurance questions, or setting short- to medium-term goals. Their role is often centred on helping you make decisions as individual needs arise, whether you’re reviewing your super, weighing up a product, or dealing with a major life change.
A financial planner, on the other hand, steps back and looks at your whole financial picture. They integrate your cash flow, superannuation, investments, insurance, retirement aims, and family considerations into a single long-range plan. This approach involves more detailed modelling and ongoing reviews to keep your overall direction aligned with your objectives.
In simple terms, the difference comes down to scope: advisers can guide you through specific decisions, while planners focus on creating a structured plan that links all parts of your financial life together.
For example, if you simply want advice on rolling over your superannuation or choosing between investment options, a financial adviser providing targeted guidance may be sufficient. If you want a coordinated retirement strategy that integrates super, tax planning, investments, insurance, and long-term income modelling, a financial planner-style engagement is often more appropriate.
Should I Work With a Financial Advisor or a Financial Planner?
Choosing between a financial adviser and a financial planner depends on your circumstances rather than which title sounds stronger. Both can add clarity, but the right choice aligns with your goals, life stage, and how much structure you want.
A financial planner may be a good fit if you:
- Want a structured roadmap that brings all parts of your finances together
- Have several moving pieces, such as super, investments, insurance, and retirement aims
- Prefer regular check-ins to keep your long-range direction steady
A financial adviser may suit you if you:
- Need guidance on one specific matter
- Prefer occasional support rather than an ongoing planning relationship
- Have a straightforward situation that doesn’t call for a full financial plan
How Fees Differ Between a Financial Adviser and a Financial Planner
Fees can vary widely across the advice profession, and understanding the differences helps you gauge what you’re paying for. In Australia, ongoing financial advice often costs around $4,000 per year. This might include yearly check-ins, portfolio adjustments, market updates, and support with tax-related decisions.
Clients who want a broad, upfront plan that covers retirement strategies, wealth-building approaches, and tax minimisation may pay anywhere from $5,000 to $12,000, depending on the level of detail involved.
Some advisers also charge by the hour, with rates commonly ranging from $275 to $550.
Where fees differ most is in the scope of the service: advisers offering targeted guidance generally sit at the lower end, while planners who prepare comprehensive financial plans tend to have higher fees due to the depth of work required.
Questions to Ask Before Choosing Any Adviser
Before deciding who to work with, ask the financial planner a few questions. These points can guide your first conversation and set clear expectations.
Questions to consider:
- What qualifications do you hold, and how long have you been advising clients?
- Do you specialise in comprehensive planning or focus on specific financial matters?
- How do you charge for your services, and what does the fee include?
- How often do you meet with clients for reviews or updates?
- Do you work independently or through an institution, and how does that shape your recommendations?
These questions can help you choose an adviser whose style suits your goals and comfort level.
Choosing the Right Financial Guidance For Your Needs
As we shared, a financial planner is always a type of financial adviser, but not every adviser offers the structured planning that some Australians need. Understanding this difference helps you match the style of support to your goals, whether you want a full roadmap or guidance on a single decision.
By considering your life stage, the complexity of your situation, and how much direction you prefer, you can select the adviser who best aligns with your plans for the future.
Sources
O’Reilly, J. (2023a, May 25). What is the difference between a financial planner and an advisor?. What is the Difference Between a Financial Planner and an Advisor? https://www.northeastwealth.com.au/resources/what-is-the-difference-between-a-financial-planner-and-advisor#what-is-a-financial-planner
Tenex. (2025, August 15). What’s the true cost of financial advice in Australia? no-nonsense guide! Tenex Wealth. https://tenexwealth.com.au/financial-advisor-cost/
Working with a financial adviser. Moneysmart.gov.au. (n.d.-h). https://moneysmart.gov.au/financial-advice/working-with-a-financial-adviser
