Delivering Quality Advice – and the Meaning of Life

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GUEST COLUMNIST – KATRINA SHANKS

In this column, I often talk about how recent events are challenging society as a whole, and individuals in their daily lives. It’s difficult to shake the feeling that we’re living in a watershed moment in time, one that’s causing people’s priorities to shift in new directions.


 

Lockdowns have given many of us the mental and physical space to reassess almost every facet of our life – from our careers through to our spending habits, mental and physical well-being.

And in many respects, Covid seems to have reframed our relationship with ourselves, prompting what some experts call ‘a mass redirection of priorities’.

So, what makes life meaningful today? It’s a compelling question that Pew Research Center (PRC) investigated in a recent global survey. Researchers interviewed 19,000 adults across 17 advanced economies, including New Zealand and Australia, and some of their findings are quite interesting from an insurance adviser’s point-of-view.

After all, another way to read the question is, ‘What makes life worth protecting?’

Family

With the notable exception of Spain, South Korea and Taiwan, one source of life’s meaning prevailed by far – and that was ‘family’.

Interestingly, Australia and New Zealand were the two countries where family and children were most frequently mentioned, by 56% and 55% of respondents respectively. Researchers also found that family was more of a source of meaning for those aged 30 to 49, an age group that is likely to have children at home.

Financial Advice NZ CEO Katrina Shanks.
Financial Advice NZ CEO Katrina Shanks.

This goes to confirm just how relevant insurance advice can be for Kiwis, and how crucial it is that we tackle underinsurance by promoting the benefits of getting cover.

Every day, advisers sit with their clients to help them protect their most important asset – their family’s future.

And we know that even more New Zealand households could benefit from quality advice. Our goal is for them to know that there are qualified experts at the ready to answer their questions.

Work and material well-being

Besides finding meaning in others and personal connections, what we do for a living also makes our lives meaningful.

Work and occupation, for example, was the second most important source of meaning for New Zealanders. Many emphasised how work provided them with a sense of accomplishment and personal growth.

Some people have found that lockdowns and remote work allowed them to focus on a more balanced lifestyle…

And of course, working relates to the ability to earn an income and lead a fulfilling life. In nearly all the 17 countries surveyed (including New Zealand), material well-being, stability and quality of life collectively ranked as one of the top five sources of meaning.

Material well-being is a broad concept here and its definition varies widely. It encompasses anything from having enough money for necessities (like food or accommodation) to being able to afford a comfortable life. But whatever ‘material well-being’ looks like, financial considerations were top of mind for most respondents.

Once again, this is a key area where insurance advisers can (and do) make a difference. By helping Kiwis secure their ability to provide for their family, insurance can protect that all-important ‘material well-being’ which allows people to achieve a fulfilling lifestyle.

Freedom and independence

According to respondents, work-life balance, free time, and an adequate salary are all conditions that contribute to freedom and independence – one of the top 10 sources of meaning overall.

Some people have found that lockdowns and remote work allowed them to focus on a more balanced lifestyle, with more time for family and self-care. But there was a divide between higher and lower-income respondents.

Out of all countries surveyed, the difference was greatest in New Zealand: those with incomes at or above the median wage were twice as likely as those with lower incomes to refer to freedom (22% compared to 10%).

On this note, it’s a common misconception that financial advice is just for the wealthy. In fact, quality advice is all about helping people create the conditions for achieving freedom with their finances, no matter the walk of life they’re from. And it comes with a host of both tangible and intangible benefits.

Local surveys have highlighted time and time again that financial well-being is a major driving force behind a person’s overall well-being. It affects their ability to respond to unpredictability, meet financial goals, and make choices that allow them to enjoy life to the fullest.

Especially in these pandemic times, having a plan can bring about a sense of direction, confidence, and peace of mind. So, advisers continue to have a significant role to play: being the sense-makers in a world that’s difficult to navigate, let alone predict.

Here to help

With so many moving parts in the economy, markets and global landscape, 2022 is shaping up to be another intense year for New Zealanders. And that’s why quality financial advice is more important than ever.

At Financial Advice NZ, we’re here to provide financial advisers with the tools they need to do their job at the highest level possible and build a better financial future for New Zealand.

At Financial Advice NZ, we’re here to provide financial advisers with the tools they need to do their job at the highest level possible and build a better financial future for New Zealand.