Three-quarters of those surveyed who stated that they had received financial advice believed the advice was worth more than it cost. And more than three-quarters of those who had received financial advice felt that they were prepared for retirement. Only 7% believed they would have to rely on the Age Pension in retirement after receiving financial advice.
Conversely, of those Australians surveyed who had not received any financial advice, 42% believed they would have to rely on the Age Pension. And only 16% believed they would enjoy a good standard of living in retirement.
How much better off?
So, how much better off in retirement could you be if you receive financial advice? According to the CoreData research, a young family could expect to be $240,000 better off in retirement.
But it’s not only in retirement where the benefits of advice are to be enjoyed. One of the report’s case studies demonstrated how a 34-year-old Australian couple who received financial advice could maximise their money to pay for:
- 6 additional years of private education for 2 children
- 32 years of trauma insurance cover, plus
- A family holiday every year until retirement.
“Good advice does of course make you wealthier at retirement, but it also adds value all the way through your life in the choices you can afford to make about schooling, insurance, holidays, housing and personal interests.”
CoreData principal economic researcher, Andrew Inwood
Other notable findings from the Value of Advice Report include:
- 93% of those who received financial advice said they are sure they could afford 3 months of being out of work, if necessary, and
- 84% of those who received financial advice always pay off their credit card each month.
Other studies also corroborate the findings of the CoreData report. Back in February 2015, I wrote about a KPMG study that found that someone who received financial advice could expect to save on average an extra $1,590 each year compared to a similar person without a financial adviser.
Academic research reveals positive perceptions
In July 2016, the Perceptions of the Value of Financial Planning Advice study was released.2 This study, supported by the Australian Research Council, was conducted by The University of Adelaide, The University of Western Australia and University of Technology Sydney.
The researchers conducted online surveys of current clients of financial advisers and individuals who were not currently clients of financial advisers to determine how financial advice was perceived by the public.
Of those respondents who were receiving financial advice:
- 69% broadly agree that paying fees to a financial planner is worth it
- 88% broadly agree that a financial planner saves them time in managing their financial affairs
- 70% agreed that they sleep well at night knowing their finances are being taken care of, and
- 81% expressed satisfaction in their financial planner.
Of those respondents who were not receiving any financial advice:
- 35% have peace of mind when it comes to their finances
- 32% feel secure financially, and
- 23% believe that the financial aspect of their life is close to ideal.
Clearly, these studies illustrate that those who receive financial advice feel that the advice they receive is well worth it. They also appear much more confident about the lifestyle they can expect to lead in retirement.
Start planning your retirement lifestyle today
To find out how you could benefit from financial advice, book your free, no obligation consultation with us today by:
Copyright © 2017