MYMAVINS consulting partners Jason Andriessen (left) and Tai Rotem

Having an adviser can drastically improve the likelihood of being satisfied with a more “lavish” lifestyle in retirement, according to findings from the inaugural ‘Value of Advice’ survey.

The research, led by the Financial Planning Association and consultancy firm MYMAVINS, compared the perceptions of unadvised and advised Australians, and aims to be conducted annually.

It found two thirds of advised retirees stated they are living a comfortable or lavish lifestyle versus only a third who are unadvised.

Twice as many felt confidence in retirement with just over 50 per cent of advised pre-retirees believing they will have enough money for retirement while just over 25 per cent of unadvised pre-retirees have the same level of confidence.

Advised Australians are also more likely to feel financially secure – 85 per cent to 62 per cent – compared to those unadvised, and more likely to feel satisfied with their current level of wealth (35 per cent to 18 per cent).

The research also found non-financial benefits with at least two-in-five advised Australians finding advice has benefitted their family life and mental health.

Sarah Abood

FPA chief executive Sarah Abood said the study makes it 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,” she said in a media release accompanying the findings of the survey. “They suffer less financial stress, enjoy a higher quality of life, have more financial confidence, and are more satisfied with their wealth.”

Advised clients with a CFP professional benefitted more than clients of non-CFP professionals (86 per cent versus 78 per cent).

Advised Australians rate their overall life satisfaction at 7.3 (out of 10), higher than 6.4 for those unadvised.

For those that sought advice, the top 10 key benefits were a greater confidence in having a comfortable retirement (47 per cent), followed by improved financial wellbeing (40 per cent) and improved financial decision making (37 per cent).

Roughly a third of respondents cites improved money management, general, and ability to achieve desired standard of living as key factors.

Lastly, help achieving financial goals, greater financial control, wealth growth, and improved financial freedom receiving 27-30 per cent of positive responses.