There is often a close link between financial and mental wellbeing. Given the cost of living crisis, some of your clients may be more worried about their financial future than they’re letting on.
Indeed, a survey commissioned by the Mental Health Foundation revealed that 34% of adults experienced anxiety as a result of financial worries in October 2022. Additionally, 10% said they felt hopeless and 29% of surveyed adults experienced stress.
You may assume that your clients only seek or need financial advice when they have a specific issue to deal with or to achieve the best possible investment returns.
However, a report by Professional Adviser has revealed that most clients approach a professional for advice for emotional reasons, rather than monetary ones.
In fact, when our clients explain why they work with a Chartered financial planner, they tell us that peace of mind, reassurance, and trust are far more important to them than the returns on their investments.
So, if your clients are finding it tough to manage their finances and it’s affecting their emotional wellbeing, they could be well served speaking to a financial planner. Read on to discover the reasons why UK adults seek financial advice and the emotional benefits of doing so.
Research highlights the importance that emotions can play in financial advice
As you can see from the graphic below, more respondents said they approached financial planners and advisers for emotional reasons than for financial ones.
The primary reason for this was a lack of comfort when it came to organising their own finances and making decisions based on their own experience (or lack thereof).
Of the top five reasons for approaching a professional, four of the five were “emotion-based” and just one “financial-based”.
Source: Professional Adviser
Receiving professional financial advice can really make a difference
A further survey carried out by Royal London revealed that financial advice helps reduce worry by more than half. Just 21% of advisers say their clients are anxious about the cost of living, compared to 46% of UK adults not working with a financial planner.
Indeed, clients that have received professional financial advice say that they feel far more confident in their financial plans and feel more in control of their finances than those who have not sought guidance.
Additionally, advised clients reported high levels of satisfaction with the expertise and advice given, the trustworthiness of the financial planner, and the communication style utilised.
We have noticed this too, with us developing close client relationships with many of our clients thanks our high standards of care and the extensive experience we have shared over the years.
As a result of the level of service we provide, many of our clients – as well as many professional firms we work with – have subsequently recommended friends, family, and colleagues to us.
Financial advice helps consumers feel more financially secure
The most obvious emotional benefit of seeking financial advice is feeling more financially secure.
With many UK adults worrying about the cost of living and being able to cope financially, either now or in the future, receiving ongoing financial advice from a professional means that consumers can feel better about their money, and themselves.
In fact, the Royal London research revealed that individuals who worked with a financial planner were less likely to feel anxious about their household finances than those not receiving advice. Additionally, clients who sought advice reported being more financially secure and stable than those who did not.
Building a long-lasting relationship with a financial planner helps improve peace of mind
As well as the short-term emotional benefits of working with a planner, clients who develop an ongoing relationship with their adviser often have even higher levels of trust and peace of mind.
In fact, developing a close working relationship with an adviser can be particularly helpful to clients, as they know they have experienced financial planners in their corner, always ready to act as a sounding board for any financial decisions.
The research carried out by Royal London revealed that emotional benefits are felt even more strongly when people feel they have a closer relationship with their adviser.
It’s something we are incredibly passionate about and work hard to maintain strong relationships with our loyal clients – often working with different generations of the same family.
Get in touch
If your clients are experiencing financial stress and would benefit from the reassurance and peace of mind of working with a Chartered expert, we can help.
Please email hello@sovereign-ifa.co.uk or call 01454 416653.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
