In its new report, Understanding Australian Advice Clients Better, Netwealth noted that advised respondents exhibited higher confidence in their finances and aligned more with positive sentiments regarding their financial future, compared with their unadvised counterparts.
Advised Australians are significantly more likely to say they feel confident in achieving their financial goals (71 per cent) compared with unadvised (55 per cent).
The same proportion said that their finances allow them to “do the things I want and enjoy in life” (71 per cent advised, 55 per cent unadvised)
Advised clients are also more likely to say, “I feel confident in making decisions in my investing activities” (60 per cent advised, 48 per cent unadvised).
Those accessing financial advice also indicated they were more likely to be financially prepared for retirement and have a higher savings balance.
“Advised Australians are significantly more likely to feel very or reasonably prepared for retirement, 76 per cent, than those without advice, 45 per cent,” Netwealth said.
“They are also more likely to have savings, with a quarter of Australians not receiving advice, 23 per cent, reporting they have less than a month’s expenses saved, compared to only 10 per cent of advised Australians.”
On top of the financial benefits of advice, the research also found that those receiving advice saw benefits in other areas of their lives, with mental health and family life being the most positively impacted.
“Australians who receive advice say that it has helped them in many other aspects of their life. Advised Australians are significantly less likely, 17 per cent, to have daily money worries than those not advised, 25 per cent,” Netwealth said.
“As a result, a sizeable proportion of advice clients say receiving advice has benefited both their mental health, 48 per cent, and their family life, 45 per cent, whilst around a quarter believe financial advice has benefited their physical health, 22 per cent, social life, 23 per cent, and work satisfaction, 23 per cent.
The research also found that those engaging with financial advice were more likely to seek other professional advice services.
“Advised Australians are more likely to use other advisers such as accountants and lawyers, demonstrating they value the contribution that advice can make to their lives,” Netwealth said.
“For example, 63 per cent of advised Australians use an accountant compared to 27 per cent by those not advised. This trend to be more open to other forms of advice is evident across business advisers, stockbrokers, lawyers, mortgage brokers and private bankers.”
