Throughout our lives, we are all likely to face the need to take financial decisions that can have a major impact on our wealth. Whether you're buying your first home, becoming a parent for the first time, investing for the future, or about to retire - a carefully thought-through financial plan can make a positive difference, throughout your life - no matter what stage you're at.
You might think professional financial advice is only necessary when it comes to complex investments or pension planning, but even a seemingly straightforward financial goal could involve numerous decisions and a range of different products and providers.
The numbers bear out
Over the years, research has produced some interesting findings that highlight the benefit of advice when taking major financial decisions. The results show that those who take advice are likely to accumulate more wealth, supported by increased saving and investing in equity assets, while those in retirement are likely to have more income, particularly at older ages.
One study highlighted that receiving professional financial advice over a five-year period*, resulted in a total boost to wealth (in pensions and financial assets) of £47,7061. Evidence suggests that fostering an ongoing relationship with an adviser leads to better financial outcomes. Those who reported receiving advice at both time points in the analysis had nearly 50% higher average pension wealth than those who only received advice at the start**.
Sadly, many people who buy complex investment, insurance and pension products don’t take the hugely important step of asking a financial adviser for help before making their decision.
True Value
Although the financial outcomes are important, we appreciate that the value of financial advice comes in different guises and can include enhancement of return on investment, peace of mind, achieving goals and realising opportunities, all combined with future security, ultimately ensuring you have enough money.
