At a time of distinct uncertainty, anything that boosts emotional wellbeing should be welcomed with open arms. That’s why new research into the impact of professional financial advice makes for compelling reading.
According to the survey, conducted on behalf of Royal London, professional financial advice helps improve people’s emotional wellbeing by making them feel more confident and financially resilient.
Indeed, the poll shows that 63% of customers who have sought advice and have an ongoing relationship with their adviser feel in control of their finances. This is compared with just over half (48%) who have not received any professional financial advice.
Anxiety about household finances less among advised customers
On the flipside, since the start of the coronavirus pandemic, just over a third (35%) of people who have not received professional financial advice feel anxious about their financial situation. Four in 10 (41%) who had not received advice felt anxious about household finances compared to just a third (32%) of those who were advised.
Furthermore, individuals who had been advised specifically about protection products reaped more emotional benefits than those who just received general advice. Moreover, having protection in place made people feel more prepared for life shocks, with one in five (20%) saying they felt less worried about what will happen to their family should they die, compared to one in seven (15%) who were advised generally.
Advice particularly beneficial for lower income households
Professional financial advice was particularly beneficial for lower income households, making them feel more in control of their finances (65%) compared to those that hadn’t received advice (52%). In a similar vein, only two in five (39%) lower income households that had been advised said they worried about being able to cope financially when they retire. This compares with nearly half (47%) of households who haven’t been advised.
The research also revealed how advised customers feel positive about the service they received. In particular, advised customers were most satisfied about the quality of advice and expertise they received (82%), communication style (81%) and trustworthiness (81%).
Speaking about the findings of the research, Tom Dunbar, intermediary distribution director at Royal London, said: “We have long suspected that the benefits of advice go far beyond financial gains alone and our research confirms that individuals who have received advice are more likely to feel confident about the future, and less likely to feel anxious or worried.
“It’s easy to see why clients turned to financial advisers when the pandemic struck. But advice is most powerful – and most rewarding – when it goes beyond a one-off meeting. An ongoing relationship with an adviser amplifies the emotional, as well as the financial, benefits.
How have you been feeling about your finances and financial security during the coronavirus pandemic? Have you sought any professional financial advice as a result?
Here at Premier Choice, we are dedicated to helping you get the clearest and most relevant advice for you. Get in touch today and discover what financial protection products are out there and start affording the peace of mind they can provide.
Rebecca joined Premier Choice Healthcare in February 2019 as a dedicated consumer account manager and looks after the needs of our individual clients. Prior to this, she worked for AXA PPP Healthcare for eleven years where she was a SME Account Manager working with a portfolio of key intermediaries across the UK.