Those who don’t have a certified financial planner may want to consider getting one. A study released Wednesday by the Financial Planning Standards Board found that people who work with a certified financial planner enjoy life more, have a better understanding of their finances and are also more confident about their finances.
Results found that while three in five (55%) of clients with financial planners are highly satisfied with their wealth, nine in 10 (87%) feel financially secure, with a similar proportion (86%) feeling better off. By comparison, just two in five (41%) consumers who are unadvised are highly satisfied with their wealth.
When it comes to mental health and family life, more than half of respondents (51%) said they feel more positive about the financial advice they get from their CFP. Clients of CFPs reported the highest quality of life score (73 out of 100), compared to those who work with other financial planning professionals (69/100) and the unadvised (66/100).
The study also found that 98% of those who work with a CFP trust the advisor to act in their client’s best interests, while 92% reported they would continue to work with their financial planner. Meanwhile, 30% of consumers perceive financial advice as too expensive and 29% are at a loss to find someone trustworthy.
Dante De Gori, CEO of FPSB, said financial planning and the role CFPs play in the current economic conditions has become more important than ever in helping consumers to make informed financial decisions and achieve their long-term goals, while enjoying a better quality of life.
“The findings in this global study illuminate a compelling reality: the immense value that CFP professionals bring in supporting clients’ financial needs amid times of uncertainty, reinforcing the reputation of CFP certification as the global symbol of excellence in financial planning,” De Gori said in a statement.
The study also show that Gen Yers, those between 25 and 40 years old, consider financial planning a top priority, with 67% saying they will seek out a financial planner for advice and 85% say they will start in the next 10 years.
According to the study, the top five benefits of working with a financial planner are: having improved financial well-being and peace of mind, more confidence with financial decision-making, having a CFP helps to explain, simplify financial matters, saves time and effort when organizing finances and clients feel more satisfied with their wealth.
The FPSB Value of Financial Planning Research 2023, undertaken for the Financial Planning Standards Board Ltd. by independent research firm MyMavins, surveyed 15,332 advised and unadvised consumers who were 25 and older, earned over $60,000 a year or held more than $35,000 in investible assets or the equivalent across 15 territories.