Australians who work with a financial planner are not only better off financially, but have a better overall quality of life according to new research from the Financial Planning Association of Australia (FPA).

The study, conducted by research consultancy MYMAVINS, informs the FPA’s inaugural Value of Advice (VoA) index.

The index compared perceptions on quality of life, financial confidence, and satisfaction of advised and unadvised Aussies.

A total of 1,051 individuals aged 40 and over took part in the survey in September.

In all measures, advised Aussies scored significantly higher than unadvised Aussies.

FPA chief executive Sarah Abood said the study provides clear evidence that financial advice delivers benefits beyond the purely financial.

“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,” she said.

“Regardless of the client’s wealth or age, the study found advice promotes and enables better quality of life.”

The research found two in five advised Australians believe professional advice has benefited their family life (41 per cent) and mental health (44 per cent).

Advised Australians are more likely to feel financially secure than those who are unadvised (85 per cent vs 62 per cent), and are more likely to feel very or completely satisfied with their current level of wealth (35 per cent vs 18 per cent).

Among pre-retirees, the study found the advised were twice as confident they will have enough money for retirement compared to the unadvised (52 per cent vs 26 per cent).

Similarly, advised early retirees have greater confidence in having enough money for the rest of their retirement than those who are unadvised (63 per cent vs 40 per cent).

The results were also broken down by clients who are advised by a certified financial planner (CFP) professional and a non-CFP professional, with those advised by a CFP professional benefitting more (86 per cent vs 78 per cent).

LDB Group’s Wealth Principal Christopher Payne said the research confirms what experts in the field already know – that financial planning is about more than just money.

“We talk a lot with clients about their lifestyle, dreams, constraints and fears. We listen, discuss, educate, and guide clients on a range of issues and as a result we frequently have strong relationships that go beyond just financial decisions,” Mr Payne said.

“This is an equally valuable part of the relationship as the actual financial strategies we put in place for clients, and for some it is the most valuable part.”

Mr Payne said clients who achieve financial independence and success, or who are on the journey to building wealth, value the peace of mind they have in knowing they are on track financially and have the option to turn to a trusted adviser at any time.

“These clients have lower levels of financial stress and higher levels of resilience which allows them to focus their energy on other areas of their lives to enjoy a better and generally healthier life,” he said.

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