If you’ve been struggling mentally or financially during the coronavirus pandemic, you’re not alone. According to a survey by the Office for National Statistics (ONS), reported by the BBC, almost half of Brits rated their anxiety as ‘high’ due to the stress caused by the pandemic.
In such difficult times, it can be important to feel that you’re in control of your finances. This is where a financial adviser can help. Read on to find out why financial advice matters now more than ever.
Individuals who take financial advice are better off by £47,000 on average
The clearest benefit to seeking professional financial advice is that by making better-informed decisions with your finances, you will be able to grow your wealth more effectively.
The pandemic has had a significant impact on many people’s finances. A report by the Financial Conduct Authority, published in the Guardian, found that almost one in three Brits had experienced a loss of income in 2020 as a consequence of coronavirus.
If you’ve been affected, the disruption may have caused you undue stress – for example, realising you may not be able to enjoy as comfortable a lifestyle in retirement as you had wanted.
This is where taking professional financial advice can help put your mind at ease. According to a study by the International Longevity Centre (ILC), receiving professional financial advice between 2001 and 2006 resulted in a total boost to wealth of £47,000 over the course of the subsequent decade.
Having this extra wealth may reduce your worries about reaching your financial goals. However, alongside the significant material benefits, the intangible benefits of financial advice are equally important.
Receiving professional advice gives many people greater financial peace of mind
On top of the direct financial benefits, seeking financial advice can have a significant positive effect on your mental health too.
One of the benefits that seeking professional advice can give you is a greater understanding of financial products. As highlighted in a report by insurer Royal London, this often leads to greater feelings of control and confidence, and can help to reduce financial stress.
According to the report, individuals who had received regular financial advice reported a much greater understanding of financial products and issues compared to those who had not.
In turn, this translated into lower levels of anxiety, as financial decisions which had seemed complicated were now much easier to understand.
The ability of individuals to make informed decisions regarding their finances also gave them other mental health benefits, such as:
- Greater confidence: 34% of people surveyed felt that having access to professional advice had made them more confident in managing their finances
- Greater peace of mind: 32% of people surveyed felt that they had gained greater peace of mind through their contact with their financial adviser
- Greater feelings of control: 34% of people surveyed felt that by working with a financial adviser they now felt more in control of their finances.
At a time when many people are under high levels of stress already, seeking professional financial advice can be a great way to deal with your financial worries.
The benefits are greater for those who see their adviser regularly
Not only can seeking professional financial advice give you greater feelings of confidence, control, and financial literacy, studies also show that if you have regular contact with your adviser, you’ll feel these benefits even more strongly.
According to the ILC study, individuals who had an ongoing relationship with their financial adviser felt more empowered to make informed decisions than those who only rarely sought advice. This translated into greater feelings of financial stability and confidence that they could withstand economic shocks.
This may be because regular contact with an adviser can help build up trust more effectively than occasional meetings. The study also found that clients who rarely see their adviser tend to consider their interactions as more transactional than those who see them regularly.
Having a greater degree of trust in your adviser can be a good way to reduce anxiety regarding finances, as well as instilling a sense of security that you’re making informed decisions with your wealth in these uncertain times.
Get in touch
If you want to feel more confident, secure, and empowered to make informed financial decisions then please get in touch. Email admin@stonegatewealth.co.uk or call us on 01785 876222.
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