Acknowledging the true value of financial planning

December 2, 2021

Having sound finances has long been seen as the route to a happy life, but the true value of our relationship with money goes far beyond endeavouring to have ‘more in the bank’. Indeed, with robust financial planning, you can open doors to new joy and purpose, particularly in retirement. Here, Trevor Clark, Chartered financial planner and director at Perspective (North East) Ltd, explains more.

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We always try to highlight the benefits of financial planning.
We like our conversations to revolve around what your money can do for you, and what your plans are, rather than simply how much you have and what sort of products you can consider.

We are therefore pleased to see this holistic approach endorsed in a new report, which suggests people with a financial planner are four times more likely than those without one to have high levels of fiscal wellbeing.

According to leading insurer Aegon UK’s Financial Wellbeing Index – which surveyed 10,000 people across a range of sectors, company sizes and job roles – only ten per cent who have never accessed advice are fortunate to combine healthy finances with a positive money mindset.

The report also found the average advised client reported nearly three times as much in pension savings at £246,000, compared to £95,000 for those who don’t receive advice.

This pattern was repeated across a range of other finances, with advised clients reporting total non-pension savings of £65,000 versus £32,000, and lower unsecured debt of £3700, compared to £6400.

The research also highlighted advised clients score better on the mindset aspect of financial wellbeing.

Just nine per cent of those without an adviser have a financial plan that stretches over ten years, compared to 34 per cent of people who receive guidance.

In our experience, financial planners, such as ourselves, have always been very focused on boosting your wealth and engaging in different conversations about how to use that to achieve your life goals.

This mindset uplift, while less well recognised, is so important to your economic wellbeing, and we are delighted to see awareness growing around the benefits of incorporating financial wellbeing into advice processes because it is something we have advocated for a good while.

We always try to challenge clients to think about their relationship with money and ask them to consider the vision of their future self.

Just as importantly, we want to know what makes them happy in life.

Discussing this with an adviser can make sure you are managing your finances, not just to have ‘more money’, but to give your future self the happiness, joy, and purpose you want in retirement.

Remember, it’s not just what your money does, it’s what it does for you.

Acknowledging the true value of financial planning

Having sound finances has long been seen as the route to a happy life, but the true value of our relationship with money goes far beyond endeavouring to have ‘more in the bank’. Indeed, with robust financial planning, you can open doors to new joy and purpose, particularly in retirement. Here, Trevor Clark, Chartered financial planner and director at Perspective (North East) Ltd, explains more.

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