Regular financial advice can have a significant impact on people’s finances and their financial wellbeing, with almost two in five (37 percent) people that received professional financial advice estimating they are £40,000 or more better off.
This is one of the key findings in research from Standard Life’s Retirement Voice report.
The research, with 6,000 UK adults (858 active users of professional financial advice and 4,933 that have never taken such advice), found that 77 percent of people who receive financial advice believe their adviser has made them financially better off.
One in eight (13 percent) estimate their financial adviser has helped increase the value of their pension, savings and investments by £30,000 to £40,000, while 14 percent agree that such advice has increased their finances by £20,000 to £30,000.
Researchers found that ongoing advice delivers several benefits compared to taking advice less frequently. Of the people who have an ongoing relationship with an adviser, 82 percent said advice has improved their finances, compared to seven in ten of those who only speak to an adviser on an ad hoc basis (72 percent).
People who are in regular contact with a financial adviser are more likely to say they deliver value for money than those who take ad hoc advice (84 percent versus 79 percent). The former group is also more likely to say that their standard of living is better because of their adviser’s services (74 percent versus 65 percent).
Financial wellbeing can also be bolstered by regular financial advice. Nearly eight in ten (77 percent) said they feel confident they know their options for using their pension savings compared to 73 percent of people that only take ad hoc advice.
Researchers said that among retirees, those who take less regular advice are twice as likely to worry that they’re making bad decisions with their retirement finances than those who still have regular contact with their adviser (21 percent versus 10 percent).
Warren Bright, head of intermediary advised distribution at Standard Life, said: “In today’s tough economic climate saving for day-to-day expenses, never mind the future, can be difficult. Professional advice helps to deliver tangible benefits for those speaking to an adviser – not only in monetary terms, but also in levels of confidence and financial wellbeing.
“We know that those who have an ongoing relationship with an adviser are more likely to enjoy these benefits than those who take advice on an ad hoc basis, or not at all. With significant structural changes to the advice framework pending, the introduction of targeted support and anticipated move to address adequacy, the role of professional advisers in helping build the financial security and confidence of more UK savers has never been more important. Professional, personalised advice will continue to play an important role in helping people make smart financial decisions, feel more secure about their financial position and achieve their long-term goals.”
