A recent study shows that Australians who have an active relationship with a financial planner are not only better off financially than unadvised Australians – they also have a better quality of life.
On average, advised Australians rate their overall life satisfaction at 7.3 out of 10, which is significantly higher than the 6.4 rating from the unadvised.
Based on the study, the top 10 key benefits advised Australians receive from a financial planner are:
1. Greater confidence in having a comfortable retirement (47%)
2. Improved financial wellbeing (40%)
3. Improved financial decision making (37%)
4. Improved money management (33%)
5. Improved general wellbeing (e.g. peace of mind, health and social aspects) (32%)
6. Improved ability to achieve desired standard of living (32%)
7. Helped you achieve your financial goals (30%)
8. Greater financial control (28%)
9. Greater wealth growth (28%)
10. Improved financial freedom (27%)
- Advised Australians are also significantly more likely to feel financially secure than those who are unadvised (85% vs 62%), and are more likely to feel very or completely satisfied with their current level of wealth (35% vs 18%).
- The study found that there is twice as much confidence among advised pre-retirees that they will have enough money for retirement (52%) compared to unadvised pre-retirees (26%).
- Similarly, with advised early retirees, there is significantly greater confidence in having enough money for the rest of their retirement than those who are unadvised (63% vs 40%).
- The research found that pre-retirees who have received financial advice are nearly twice as likely as those who have not, to expect at least a comfortable standard of living in retirement compared to those who are unadvised (41% vs 23%).
- Two-in-three early retirees who have been advised say they are living a comfortable or lavish lifestyle compared to only 1 in 3 of those unadvised (67% vs 33%).
- With the cost of financial advice looming large for many Australians, the research found those who received financial advice thought it was worth every cent.
Study conducted by the research consultancy MYMAVINS.
An online quantitative survey was conducted from the 9th September to the 20th September.
The final sample composed of 1,051 individuals consisting of Australians 40 and over:
· 406 were advised
· 645 were unadvised
Tuesday 4th October