For many, the benefits of financial planning might seem to not go beyond financial stability. Some might think that investing some savings will only result in a more secure financial future, however a recent study carried out by HSBC has shown that financial planning can actually provide additional benefits. They found that people who make use of the services offered by financial advisers tend to benefit from a better mental wellbeing.
Receiving guidance from financial professionals to meet long term goals seems to take a great weight off investors. This is because having to make such plans on their own can often be overwhelming and in the end, not particularly successful. A good adviser is well aware of the importance of a long-term relationship with clients and will have frequent contact. The ability to interact often will help consumers iron out any doubts that come up as time goes by, increasing trust between the adviser and client.
The study carried out by HSBC Life UK found that out of 3000 UK adults, 72% of those who review their financial position at least once a year benefit from average or above average mental health whilst more than 50% of those who don’t do this tend to suffer from below average mental health. Similar numbers were observed for people holding a retirement plan as opposed to others who did not.
This is something we experience first-hand at Spectrum. Clients are at ease knowing that we are there whenever they have a query. They also like to know if they are on track for financial security, particularly when they look ahead into retirement. We can use sophisticated cashflow forecasting tools to clearly illustrate their cashflow well into old age. This is very popular because most clients tend to get lost when they are just seeing numbers in front of their eyes.