How Financial Advice Can Improve Your Life

May 10, 2022

What if the best thing you could do for your financial life right now was to pick up the phone, or open an email, and connect with a financial adviser?

According to recent research, having an ongoing relationship with a financial adviser helps New Zealanders create better financial behaviours, putting them into a better position on track to a wealthier future.

What did the research show?

The independent research, commissioned by Financial Advice New Zealand, asked approximately 2,000 people about their financial goals and aspirations, and how working with an adviser help them make relevant changes.

Two-thirds of those getting financial advice said it had led to positive outcomes like a better understanding of the risks of their financial plan, and a clarity about how to achieve financial goals.

Maybe most importantly, 70 per cent of them said they were better equipped to actually stick to the financial plans they had made, which is the key to making them happen.

More than just financial help

More than two-thirds of people who worked with an adviser said their financial security had improved as a direct result of the financial advice they had received.

But that was not all: others said that the advice helped their mental health, family life and even their physical health. Once again, the study confirms that quality advice is not just about tangible benefits, but it also brings some pretty important intangible benefits to the table.

When it comes to their financial health at large, advised New Zealanders were also more likely to make more than the minimum contribution to KiwiSaver, have a documented budget or financial plan, annually review their home loans and increase their mortgage repayments when their incomes rose. These are all tactics that can help you get ahead over time and end up in a much better financial position.

Lastly, advised Kiwis were also more likely to have investments beyond KiwiSaver, understand the importance of diversification and have made a start to plan for retirement.

The professional in your corner

In some ways, these results may not seem surprising – having someone in your corner to help you set your goals, work out how to achieve them, keep you accountable and answer your questions is a huge asset when it comes to making financial progress.

But, given how much New Zealanders do love to DIY, the difference that was seen between the advised and non-advised population is really striking.  

Ninety-four per cent of advised people said they felt very or reasonably confident making big financial decisions, compared to just 83 per cent of people who did not have an adviser. That’s a significant proportion of people from whom an adviser has helped to take the weight off their shoulders.

What’s more, almost twice as many advised Kiwis had life insurance and health insurance than unadvised. Usage of other types of insurance such as income protection and total and permanent disability insurance were more than three times higher amongst advised Kiwis than the unadvised.

So not only are they more likely to be on track, but advised people are also more likely to have protection to make sure it stays that way.

Ready to join them?

If you’ve been thinking about getting financial advice, this research shows there’s no time to waste when it comes to taking action. The sooner you can start to make the most of these benefits of an advice relationship, the sooner you can start taking steps towards your better financial future. Like to discuss your needs and goals? We’re at the end of the phone, or email.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.