New Zealanders who receive professional financial advice are better prepared for the future than those who don’t, according to research by Financial Advice NZ.
Its Trust in Advice report is based on an independent survey of 2000 consumers, carried out for the organisation by Core Data, to determine the value of financial advice.
Katrina Shanks, CEO of Financial Advice NZ, says survey respondents who sought advice have an overall better perception of their financial health, wealth, and wellbeing when compared to those who haven’t.
“It confirms what we have long believed,” says Shanks. “People who access quality financial advice are better off than those who don’t. Until now this has been hard to quantify or prove, but this research puts it beyond doubt.”
The Trust in Advice research report reveals:
- 55.3% of Kiwis who received financial advice say they feel extremely secure for their future, compared to 38.9% of those who have not received financial advice
- 50.1% of advised Kiwis say they are reasonably prepared for retirement compared to 26.4% of unadvised
- 69.9% of advised Kiwis also say they have enough money put away for an emergency, compared to 52.4% of unadvised
- 66% of advised Kiwis say they are happy with their financial position, compared to 47.7% of unadvised
Shanks says: “Trust in Advice also recognises the uncertainty of what lies ahead and looks at how attitudes to money and advice and planning may be shaped under the new normal, and how New Zealanders may plan for future economic downturns.”
The survey also shows financial advisers are seen as trusted professionals with 93.7% of those surveyed – who have used an adviser – rating them as good or very good with regard to trustworthiness.
And 88.3% of advised consumers are satisfied or very satisfied with the help they receive, while 72.2% of those who haven’t used an adviser agree financial advisers are trustworthy.
People who access quality financial advice are better off than those who don’t…
Shanks says the report shows “…definitively that professional financial advice has high value for those looking to secure their financial future”.
“It’s very clear from this that professional advisers are rated very highly for their trustworthiness, good consumer outcomes, service, and results – both tangible and intangible – by consumers across all demographics.”
Download the full report here.