New research shows that sound financial advice boosts confidence and emotional wellbeing
Financial advice is more important than ever. Not only have changes in pensions and financial regulation placed more responsibility for planning retirement income into the hands of individuals, but the coronavirus pandemic has also reminded us all of how unforeseen events can rock the foundations of what we had thought was a stable financial footing.
The financial benefits of taking advice are well documented. Research undertaken by the International Longevity Centre UK (ILC) in 2019 showed that those who take advice are on average £47,706 better off in retirement than those who don’t1.
Building on this study, the ILC has undertaken new research this year that shows financial advice could be an important factor in promoting mental health and wellbeing. Its report “Peace of mind: Understanding the non-financial value of financial advice” finds that non-financial benefits may be at least as important as the more easily visible financial ones in achieving this.
Participants in the study who had taken financial advice reported that they felt less worried about their future, enjoying the peace of mind that comes from knowing that proper preparation has been made for their later years – and that included those who were already in retirement.
They felt more confident that they would achieve their long-term goals and through their interactions with an adviser, felt more financially literate and able to understand how those goals would be achieved.
A financial adviser can help with your own financial planning. To receive a complimentary guide covering wealth management, retirement planning or Inheritance Tax planning, contact Peter Harding Wealth Management on 01202 830730 or email peterhardingwm@sjpp.co.uk
1ILC, What it’s worth – Revisiting the value of financial advice, November 2019, based on 2014/2016 calculations. Receiving professional financial advice between 2001 and 2006 resulted in a boost to wealth (in pensions and financial assets) of £47,706 in 2014/16.