Receiving professional financial advice boosts a person’s emotional wellbeing, survey shows

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Receiving professional financial advice boosts a person’s emotional wellbeing, survey shows

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Posted on: 16/09/2020

Receiving professional financial advice boosts a person’s emotional wellbeing, especially in times of crisis, new research has revealed.

The research, carried out on behalf of Royal London, also showed that an ongoing relationship a financial adviser provides the most benefit.

The Royal London survey stated that around 17 million people in the UK (26% of the population) have received some kind of financial advice at some stage – and that the majority feel positive about their particular adviser, and positive about the services that adviser provides for them.

Of those satisfied people, the most common benefit of their adviser’s services was the access to expertise. That made clients:

  • feel more confident in their financial plans
  • feel more in control of their finances
  • gain peace of mind.

The research also showed that:

  • 82% of advised customers were positive and felt satisfied over the quality of advice and expertise
  • 81% were happy with the communication style of their adviser
  • And 81% were also satisfied over the trustworthiness of their adviser.

Customer satisfaction with advisers is even higher where there is an ongoing relationship in place, the survey found. And customers who had been advised and subsequently had ‘protection cover’ in place felt the emotional benefits of the advice more than those people who received ‘general’ advice, and said they felt more prepared for ‘life shocks’.

Indeed, the survey revealed that one in five (20%) people who had protection felt less worried about what will happen to their family after they die compared to one in seven (15%) who were advised generally.

The research also looked at how the 2020 Covid-19 crisis made non-advised customers feel about their finances.

A third of people felt anxious about their financial situation, while 65% admitted to having come to appreciate the value in being more prepared for shocks and surprises in their lives.

Other aspects of the survey revealed:

  • 63% of people who received advice said they felt financially secure and stable compared to just half (48%) who had not received advice.
  • 41% who had not received advice felt anxious about household finances compared to just a third (32%) of those who were advised.
  • Understanding of financial products was much greater among those who were advised compared to the non-advised.

• Royal London researched 4,007 people.

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