Improved financial wellbeing positively impacts mental and physical health and family life, playing a key role in helping to alleviate stress across generations.
According to research by the Financial Standard Planning Board (FPSB), clients of a professional financial planner experience a higher quality of life, financial confidence and satisfaction (75 per cent) than those unadvised (71 per cent), with 83 per cent of advised respondents saying they were feeling financially secure opposed to 74 per cent of unadvised.
The FPSB research looked at three key areas across both respondents who were advised by certified financial planning (CFP) professionals and those who were unadvised.
It found that CFP professional clients have greater life satisfaction and feel like they can cope with health issues better than their unadvised counterparts, with almost 15 per cent more CFP advised clients feeling that their interests and involvement in life gave them a sense of meaning and purpose, compared to unadvised clients (73 per cent CFP vs 64 per cent unadvised).
The research, which marks World Financial Planning Day (October 4) was undertaken by FSPB with over 15,000 consumers across 15 global regions, including the UK.
Sally Plant, assistant director, financial planning and education development at the Chartered Institute for Securities & Investment (CISI), said: “This is one of the largest ever pieces of global consumer research undertaken, examining the benefits of financial planning and of working with a CFPM professional.
“With many parts of the world experiencing economic strain and rising costs of living, it is more important than ever that we acknowledge that improved financial well-being positively impacts mental and physical health, and family life.”
The research revealed that professional clients are more likely to feel financially secure than unadvised consumers.
Improved financial wellbeing and peace of mind (37 per cent), financial decision-making confidence (38 per cent) and help in understanding financial matters (36 per cent) are considered key benefits when working with a financial planner.
Meanwhile, almost one in two clients said their family life (48 per cent) and mental health (48 per cent) have benefitted from seeing a financial planner.
“The research shows that financial wellbeing plays a key role in alleviating stress across generations, and that financial planning clients report an improved family and social life, and physical and mental health – the gym for the brain,” Plant said.
The research also found that advised women experience a significant value in financial planning (74 per cent) compared to unadvised women (57 per cent).
Key myths
The global research uncovered a number of myths among consumers.
Around a third (39 per cent) of less affluent, unadvised consumers felt that financial planning could help improve financial wellbeing and peace of mind.
Additionally, less affluent consumers have the same need for financial planning, indicating that one of their top, unmet needs was to ensure they have regular money to live on (38 per cent).
All generations of advised consumers experience quality-of-life benefits, financial confidence and financial satisfaction, compared to unadvised consumers.
