How your clients could retire 3 years earlier with the help of a financial planner

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Whatever stage of life your clients have reached, it’s likely that one of their key goals will be to retire on their terms and enjoy their desired standard of living once they don’t have to worry about work.

Now, new research has revealed that one of the best ways to achieve those aims could be to work with a financial planner.

Financial planning can provide both monetary and emotional benefits, help your clients to retire earlier, and ensure they can sustain their lifestyle for longer once they enter this exciting chapter of their life. Read on to find out how.

Working with a financial planner can help your clients to retire earlier

A new study by Standard Life has shone a light on the clear benefits of working with a financial planner.

The research found that UK consumers working with a financial planner say they will be able to retire three years earlier on average than those who haven’t received advice.

In addition, Standard Life found that clients who sought advice also believe they’ll be able to fund their retirement lifestyle for six more years than those who are not advised – 23 years versus 17 years.

The study highlights the impact that financial advice can have on retirement preparations, with those who receive advice feeling better equipped for later life.

One of the key reasons for this is that working with a financial planner encourages clients to think carefully about what they would like to do once they retire and start making plans now so they can achieve those goals.

More than twice as many people who receive financial advice go on to write a plan detailing spending in retirement compared to those who haven’t taken advice.

Chris Hudson from Standard Life commented: “Planning your finances for retirement is daunting, and can throw up a lot of considerations, so it’s no surprise that people who receive financial advice feel better prepared for the future.

“Our research shows the value of financial advice. It not only positively influences the age at which someone retires, but also whether they enjoy their retirement too.”

The Standard Life research also reveals the benefits of financial planning for those who have already retired.

Almost all (96%) of retirees who did either a great deal of financial planning or just a little financial planning (82%) say they are enjoying their retirement, compared to 72% of those who did not work with a financial expert.

Financial planning can lead to better monetary outcomes

While working with a planner can help your clients enjoy retirement, it can also help to boost their overall wealth.

A landmark study by the International Longevity Centre revealed that receiving professional financial advice between 2001 and 2006 resulted in a total boost to wealth (in pensions and financial assets) of £47,706 in 2014/16.

Evidence also suggests that maintaining an ongoing relationship with a financial planner leads to better financial outcomes. Individuals who reported receiving advice at both time points in the analysis had nearly 50% higher average pension wealth than those only advised at the start.

Working with a planner can boost clients’ emotional wellbeing

When we ask clients to identify the benefits of working with Sovereign, it’s rare that they talk about investment performance or highlight the growth in value of their wealth.

Most of our clients talk about the benefits of having a trusted partner, the peace of mind of knowing that they are on track to reach their goals, and the reassurance that they have an expert they can turn to for guidance.

These benefits were borne out in a Royal London study that showed working with a financial planner had many mental wellbeing benefits.

Source: Royal London

As you can see from the graphic, people who worked with a financial planner felt more in control of their finances, less worried about coping when they retire, and less anxious about their household finances.

Get in touch

If you have clients that would benefit from expert advice, and creating a financial plan that could help them to achieve their goals, please get in touch.

Email or call 01454 416653.

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