Team No Comments

Please see the article below cut and pasted from MoneyAge last week covering research by Aegon.

People with a financial adviser are four times more likely than those without one to have high levels of financial wellbeing, a new study from Aegon has found.

The pension provider said that people discuss with their advisers what makes them happy and gives them purpose to identify meaningful financial goals.

Aegon’s Financial Wellbeing Index, based on a representative survey of 10,000 people across a range of sectors, company sizes and job roles, revealed that just 10% of people who have never had any financial advice are fortunate to combine healthy finances and “a positive money mindset”, compared to 44% of those who have an ongoing relationship with a financial adviser, and 23% who have occasionally used a financial adviser.

The research also highlighted that the average advised client reported nearly three times as much in pension savings at £246,000, compared to £95,000 for non-advised people. This pattern was repeated across a range of other finances, with advised clients reporting total non-pension savings of £65,000 versus £32,000, and lower unsecured debt at £3,700 versus £6,400.

“Financial advice can make a significant difference to your future financial wellbeing,” said Aegon pensions director, Steven Cameron.

“Advisers have always been very focused on making sure they can boost their clients’ wealth. But the boost to mindset, while less well recognised, can be just as important to financial wellbeing. There is a growing awareness of the benefits of incorporating financial wellbeing into financial advice processes among financial advisers and planners.”

Aegon also stated that many advisers now try to establish what motivates their clients in order to build financial plans that enable them to achieve meaningful goals in life. The research found that 79% of those with an adviser say they have a clear sense of what gives them joy or purpose, which can significantly influence how people prioritise their finances, compared to 68% without.

Cameron added: “It’s important for all of us to think about our relationship with money, our vision of our future self and most importantly what makes us happy in life. Discussing this with an adviser can make sure you are managing your finances not just to have ‘more money’ but to allow you to give your future self the happiness, joy and purpose you want in retirement.”

People and Business IFA comment

The role of the IFA today is multifaceted, helping you to grow your assets tax efficiently, manage risk, define your objectives and help you achieve your objectives tax efficiently on a holistic basis.

We achieve this by engaging fully with our clients, communicating the issues, educating our clients about markets, products and their options, and gradually nudging them in the right direction.

This is done by keeping a close eye on markets, tax and regulatory changes alongside product innovation and fund launches.  It’s a full time and fully engaging role to be a modern IFA.  It’s also rewarding when we help our clients achieve their objectives whether it’s early retirement, inheritance tax efficiency, or protecting their family and business – their staff and key people too.

It’s no surprise to me that advised clients are in a better place over the long term, this is logical.  I might have a bias as an IFA, but I really believe in what we do.

Steve Speed DipPFS

09/08/2021