A new report from Aegon has revealed the impact that taking financial advice can have on a Client’s financial wellbeing.
Using data gathered from research carried out on 2,000 people in December 2019, the report has highlighted that there is a strong positive relationship between financial advice and financial wellbeing.
Some key findings included those who had engaged with a financial planner were more likely to have money left over at the end of the month, be better prepared to handle unexpected expenses and enjoy life more due to the way they are managing their finances. Conversely, it revealed that those who had not engaged with a financial planner were more worried about running out of money and not being able to achieve everything they wanted in life.
The report was broken down into 5 key areas:
The report found that those who have taken advice are 9% more likely to enjoy life than those who have not. This was mostly down to the peace of mind offered by having their finances managed by a professional, allowing them to divert their attention to the things they love doing most in life.
At Finura we have always emphasised the need for a long-term approach to financial planning, be it planning for retirement, fulfilling desires to travel, paying for children’s’ education or moving to a bigger home. Aegon’s report showed that nearly half of those (49%) who had taken financial advice were confident they were doing everything they could to secure theirs and their family’s financial future compared to just 37% who had not.
Despite our best intentions to hope for the best, prepare for the worst, there will inevitably be unexpected situations that arise that are out of our control – unemployment, expensive household repairs, funeral costs or illness. The research revealed that those who had taken financial advice were 10% more likely to be able to handle a major financial expense than those who had not.
Many of the things we want in life come with a price tag and require saving for. Our confidence in choosing how we use our money can be hindered by how our financial situation makes us feel and the actual choices we are able to make. Aegon’s report found that those who had taken financial advice were less likely to blame their financial situation for never having the things they wanted versus those who had not (29% versus 43%).
We can all find it hard to concentrate at work when we have personal things on our mind such as health issues, family problems and job security. However, the research revealed that those who had taken financial advice were less likely to struggle with productivity (50%) than those who had not (62%).
If you are interested in speaking to a financial planner to see how we can help improve your financial wellbeing, please contact us here. We are delighted to take questions and enquiries and any initial conversations or meetings are on us.
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