People who take financial advice are more likely to be satisfied with their lives compared to those who opt for a DIY approach to personal finance. New research from insurance giant Aegon has examined the link between getting an expert to weigh in on personal finances and overall wellbeing.
The results showed that those who take advice tend to enjoy themselves more and have a better sense of wellbeing than their go-it-alone peers.
More than one third (34%) of those who took expert advice said they were able to enjoy life because of how they handled their money, compared to just one-quarter of those who hadn’t. They were also more able to handle the financial shock.
People who had sought professional help were also shown to be more confident about the future, with nearly half (49%) of the participants saying they were confident that they had done everything possible to secure their financial future; compared to just 37% of those that hadn’t.
While you might expect those with an adviser, who tend to be well off to begin with, to report fewer money worries, the research also found that when it comes to the extent to which people feel in-control about their long-term financial plans and their relationship with money, those with an adviser were significantly more positive in their outlook.said Aegon’s Chief Distribution Officer, Ronnie Taylor
In fact, people who took a DIY approach to money reported being more distracted at work over money worries and struggling with routine tasks as a result of anxiety over their finances.
While many people who have financial worries experience setbacks in their performance at work, those who don’t take advice are more likely to struggle with their daily responsibilities than those who do.
Financial wellbeing is the link between money and happiness, but it’s not just about the amount of money someone has now, it’s about their plans for the future. The people who feel in control of their long-term financial plans and their relationship with money will have a more positive outlook. So, for those wanting to focus less on money worries and more on enjoyment in life, financial advice could help give them the peace of mind to do so.said Mr. Taylor
People seeking guidance or advice can look for help in lots of different places. Aegon pointed to a number of government-backed services that offer comprehensive financial advice for free.
The Money Advice Service offers impartial advice about money, savings, debt, and tax. As well as hundreds of articles, fact sheets, and calculators, the service includes a directory of FCA-regulated retirement and general financial advisors.
Pension Wise is a government-backed advice service for people aged 50 and Over who have a personal or workplace contribution-based pension. Savers can book a free appointment to meet over the phone or in-person with a specialist, to learn more about how their pension works and their options for withdrawing savings as a regular income or in a lump sums.