The benefits of financial advice for your mental health

 07 December 2020
The benefits of financial advice for your mental health

You don’t need us to tell you it’s been a stressful year. According to an ONS study, over 25 million of us have experienced high levels of stress since the COVID-19 pandemic began. 

In a very timely study, Royal London teamed with the International Longevity Centre UK to see if “professional financial advice can help to improve emotional wellbeing.” The findings showed that talking about their finances to a professional

"makes people feel more confident and financially resilient, especially in times of crisis.”(2)

 

Financial benefits of professional financial advice

The survey of the financial benefits showed that:

  • People who seek financial advice are on average £47k better off, 10 years on.
  • Those who sought advice could see an uplift of around £31k to their pension value and a £16k increase for other financial assets.
  • People who consult an advisor regularly are up to 50% better off than those who just consult someone once.

That’s a terrific return, literally just for the asking.

Are you missing out?

The research also unearthed the fact that only 26% of us have actually received professional financial advice, with the lowest uptake by single females earning under £30k and under the age of 35. In contrast, the highest take-up of regular advice was from men aged over 45, earning over £40K, and married or with their civil partner.

That’s a lot of the population who could be missing out on optimising their finances including assets, investments and pensions. Which is a shame, as those who did seeks advice, and in particular holistic financial advice across their entire financial arrangements, gave an overall 81% satisfaction score. 

The emotional benefits of financial advice

Those who had received professional advice felt:

  • More in control of their finances
  • Less worried about coping financially in retirement
  • More on top of their household finances
  • More financially secure
  • Better prepared to cope with “life’s shocks”
  • More confident about their future

Interestingly, these contributions to their emotional wellbeing had nothing to do with how much they actually earned. Whilst those financially better off were more confident overall, the gap between those who had received advice and those who had not was much the same.

The top three benefits of professional advice were 

  1. Greater confidence
  2. Feeling in control of their finances
  3. Peace of mind

Peace of mind

Let’s not overlook the significance of that third benefit - peace of mind. As many would agree, peace of mind is not a ‘one off’ event. So it was reassuring to see that those who had an ongoing relationship with their financial advisor and spoke to them on a regular basis were twice as confident and were almost twice as likely to enjoy peace of mind.  Some of this may have come as a result of better understanding their financial arrangements, future planning and products than those who didn’t seek regular advice. 

Worried about your financial future? Call us

This year has taught us all the importance of talking to each other, and that a problem shared is often a problem halved. So, call us to book your online initial consultation to review your finances. Many of our Panthera Wealth clients did just that a few years ago, and continue to benefit emotionally and financially from our ongoing advice and financial reviews. Why not join them? 

And if you’re wondering if now is the right time, the answer is definitely yes! As one customer in the study said:

“Stop burying your head in the sand. Amazing how much better it feels when you have a plan to clear debt and start saving and start sleeping properly.”

 

 

Panthera Wealth 

What do you want to achieve with the remainder of your life?

 

 

 

 

 

SOURCES

(1) ONS Research, Personal and economic wellbeing in the UK, May 2020
(2) Feeling the benefit of financial advice: How professional support helps to improve emotional wellbeing, Royal London, 2020
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Although finances and circumstances may change in the future, I feel the Financial Planning process has given me a more positive outlook, and an ability to have greater control of my own financial security both now and in the future.

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