Australians who seek financial advice measure better on all aspects of quality of life and better mental health, according to new research from the Financial Planning Association of Australia.
The research, which was conducted by MYMAVINS, compared perceptions of unadvised and advised Australians, measuring quality of life, financial confidence, and satisfaction. It surveyed 406 advised consumers and 645 unadvised consumers.
The study looked at a range of life measures and found those who receive financial advice responded more positively to all of them. For instance, 76% of advised Aussies said they feel they are living a life consistent with their values versus 67% of unadvised. Further, 71% of those that get advice feel positive and optimistic about life versus just 55% of those that do not get advice.
"They are more likely to be living with purpose, are more optimistic, have more resilience in the face of challenges, are more connected with others, and even feel healthier. It's a virtuous cycle of increasing quality of life," the research said.
Overall life satisfaction for advised clients is 7.3 out of 10, compared to just 6.4 for those unadvised.
In terms of financial security, 85% of advised Aussies feel secure and 62% of unadvised do. Meanwhile, on financial satisfaction, 35% of advised people said they are completely or very satisfied with their level of wealth, while 54% said they are somewhat satisfied. For the unadvised, just 19% are completely or very satisfied and 82% are somewhat or not satisfied at all.
Finally, in retirement, those that seek advice are twice as likely to experience a comfortable retirement than those that do not. Breaking this down, those under 65 are more likely to envisage key financial and wellbeing benefits to seeking financial advice, while those over 65 are more likely to think they can do it themselves.
Other areas the study found advised Australians registered benefits include improved financial decision making (37%), improved money management (33%), greater financial control (28%) and improved financial freedom (27%).
"Australians with an active relationship with a financial planner are better off in multiple ways. They suffer less financial stress, enjoy a higher quality of life, have more financial confidence, and are more satisfied with their wealth," FPA chief executive Sarah Abood said. "Regardless of the client's wealth or age, the study found advice promotes and enables better quality of life."