Receiving financial advice can enhance clients' happiness, health and personal relationships, new research by IOOF suggests.
In a statement, the financial services company said the research, titled 'The True Value of Advice', looks at the potential emotional benefits of financial advice, which could redefine what it means to receive good advice.
"This new research shows that financial advice is about so much more than just financial outcomes," said IOOF general manager of distribution, Renato Mota.
"In fact, it sheds new light on traditional thinking and the way we measure the value of financial planning."
Mr Mota said the study found there are "significant" emotional benefits experienced by Australians who receive ongoing professional financial advice.
Respondents to a survey had 21 per cent more peace of mind about their financial future and 20 per cent increased feelings of financial security over those who did not receive ongoing professional advice, he said.
"What was surprising, however, was how much financial advice impacts happiness generally – respondents reported 13 per cent greater levels of overall personal happiness," Mr Mota said.
"Clearly, overall personal happiness and financial planning are inextricably linked, and financial planners play a role in their clients' lives far beyond improving financial management and investment returns."
Mr Mota added that advisers who recognise this "will be the ones to succeed".
"IOOF stands ready to help financial planners look at the big picture, re-assess how they interact with clients, and embrace a holistic approach to financial planning," he said.
IOOF's research drew on survey responses from 521 consumers.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 10 Dec 2018Only 12% of advice practices have exit plansBy Adrian Flores
- 10 Dec 2018CIPRs need to account for future mortality rates, study findsBy Adrian Flores
- 10 Dec 2018Freedom halts selling of life insuranceBy Adrian Flores
- 7 Dec 2018New ASIC deputy chair announcedBy Adrian Flores
- 7 Dec 2018Growth companies fund added to Macquarie WrapBy Adrian Flores
- 7 Dec 2018ASIC makes unique AFSL decision on foreign adviserBy Adrian Flores
- view all