To coincide with Financial Planning Week, the Financial Planning Association (FPA) of Australia has launched its inaugural Value of Advice (VOA) Index based on a research study conducted by research consultancy, MYMAVINS.
The VOA compares perceptions of unadvised and advised Australians, measuring their quality of life, financial confidence and satisfaction, with plans to expand its scope in the future to capture a year-on-year comparison regarding how Australians value financial advice.
The inaugural index found that advised Aussies are significantly better off across the board, with financial advice said to promote a better quality of life and many other non-financial benefits.
Namely, two in five advised Australians said professional advice has benefited their family life and mental health.
Moreover, based on the study, among the top 10 key benefits advised Australians enjoy are greater confidence in having a comfortable retirement (47 per cent), improved financial wellbeing (40 per cent), improved financial decision making (37 per cent), improved money management (33 per cent) and improved wellbeing (32 per cent).
Commenting on the findings, FPA chief executive officer, Sarah Abood, said undeniably clear that financial advice delivers benefits beyond the purely financial.
“Australians with an active relationship with a financial planner are better off in multiple ways. They suffer less financial stress, enjoy a higher quality of life, have more financial confidence, and are more satisfied with their wealth,” Abood says.
“Regardless of the client’s wealth or age, the study found advice promotes and enables better quality of life.”
Moreover, the research revealed that for 32 per cent of Aussies, financial advice improved their ability to achieve a desired standard of living, while 30 per cent of the respondents said it helped them achieve their financial goals, and 28 per cent said it gave them a sense of greater financial control.
“On average, advised Australians rate their overall life satisfaction at 7.3 out of 10, significantly higher than the 6.4 rating from the unadvised,” Ms Abood said, adding that advised Aussies are much more likely to feel financially secure than those who are unadvised.
With the cost of financial advice looming large for many Australians, the research found those who received financial advice thought it was worth every cent.
“Advised Australians overwhelmingly believe advice has made them tangibly financially better off and that its value outweighs the cost,” Ms Abood said.
The survey included 1,051 individuals consisting of Australians 40 and over.
Assume Sarah / FPA wont want to spend any of their significant bank deposits to get this publicised/promoted out to the wider community – doing the industry no good internally!!