Revealed: People who receive financial advice are better prepared for the future

by Roxanne Libatique15 Oct 2020

People who receive professional financial advice are much better prepared for the future than those who do not, according to the latest report by the Financial Advice New Zealand.

Financial Advice NZ's Trust in Advice report, which surveyed 2,000 people, revealed that 55.3% of Kiwis who received financial advice said they feel extremely secure for their future compared to only 38.9% of those who have not received it.

It also showed that 50.1% of advised Kiwis said they are at least reasonably prepared for retirement compared to only 26.4% of unadvised people. Meanwhile, 69.9% of advised Kiwis said they have enough money saved for an emergency compared to only 52.4% of unadvised people.

Moreover, 66% of advised Kiwis said they are happy with their financial position compared to 47.7% of unadvised people.

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The report also revealed that financial advisers are seen as trusted professionals – with 93.7% of the respondents who have used an adviser rate them as good or very good with regard to trustworthiness.

Moreover, 88.3% of advised people said they are satisfied or very satisfied with the help they received from advisers, and 72.2% of those who have not used an adviser agreed that financial advisers are trustworthy.

“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,” said Financial Advice New Zealand chief executive Katrina Shanks.

“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.”

“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,” Shanks concluded.

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