People Who Get Professional Financial Advice Better Prepared For Future, Research Report Finds

New Zealanders who get professional financial advice are much better prepared for the future than those who don’t, research by Financial Advice New Zealand has found.

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 just 38.9% of those who have not received financial advice
• 50.1% of advised Kiwis say they are at least reasonably prepared for retirement compared to 26.4% of unadvised
• 69.9% of advised Kiwis say they have enough money put away for an emergency, compared to just 52.4% of unadvised
• 66% of advised Kiwis say they are happy with their financial position, compared to 47.7% of unadvised.

Trust in Advice is a comprehensive and independent survey into the value of financial advice. It sought to understand to what extent consumers perceive their experience with a financial adviser as valuable, and if those who sought advice have an overall better perception of their financial health, wealth, and wellbeing compared to those who haven’t.

It was made public today at the Annual General Meeting of Financial Advice New Zealand.

Trust in Advice also shows financial advisers are seen as trusted professionals:

• 93.7% of those surveyed who have used an adviser rate them as good or very good with regard to trustworthiness
• 88.3% of advised are satisfied or very satisfied with the help they receive
• 72.2% of those who haven’t used an adviser agree financial advisers are trustworthy

Financial Advice New Zealand Chief Executive Katrina Shanks says Trust in Advice 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.

“It confirms what we have long believed – that people who access quality financial advice are better off than those who don’t, and that quality financial advice leads to a long-term increase in people’s financial health, wealth, and wellbeing.

“Till now this has been hard to quantify or prove, but this research puts it beyond doubt. People are better off if they get quality advice than if they don’t.

“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.”

Trust in Advice surveyed 2000 people. Some 1400 were asked about their experience with their financial adviser to determine whether the advice helped them achieve a better outcome compared to purchasing financial products such as mortgages, insurances and investments without independent advice, and if they felt more financially secure after seeing a financial planner.

Some 600 unadvised people were asked for their perceptions of financial advisers, their unmet financial needs and goals, and their perceived benefits of financial advice.

Trust in Advice was conducted by CoreData Research, a recognised global specialist in financial services research.

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