Financial advice could improve your emotional wellbeing

Royal London is the UK’s largest mutual life insurance, pension and investment provider and their latest research shows that professional advice delivers more than the expected financial benefits, helping to improve peoples’ emotional wellbeing by making them feel more confident and financially resilient, especially during difficult times like we are currently facing with the coronavirus pandemic.

Studies show that poor financial health can lead to poor mental health and the connection between the two is cyclical – poor mental health can lead to even greater financial difficulties.

How professional advice can help you cope better with financial worries

Financial matters, such as worries about not saving enough, providing the best future for our family or simply not knowing where to start or what your options are, are often a central source of concern for many people and can play a big part in your emotional wellbeing.

Having the support of a professional to break down your financial situation and provide clarity and advice to help you make good decisions can take away some of the stress.

The research revealed several emotional benefits felt by those receiving financial advice compared with those that hadn’t:

• Greater confidence about their financial plans
• Feeling more in control of their finances
• Peace of mind through having access to the right expertise
• Better knowledge and understanding of their finances, particularly with protection and retirement planning

The research also showed that individuals who receive financial advice really value the contact they have with their adviser and felt much better having a plan in place to clear debt and start saving.

As independent financial advisers, we see these benefits among our clients all the time and this important research from Royal London demonstrates just how much difference professional financial advice can make.

Building long-lasting relationships is key

One of the key points from the research was that the emotional benefits mentioned above are felt even more strongly when people feel they have a closer relationship with their adviser.

Building long-lasting, trusted relationships with our clients is something we are passionate about at George Square and we work hard to maintain this with our loyal clients, the majority of which have been with us for a number of years where we work with different generations within a family.

The impact of COVID-19 on financial and emotional wellbeing

The Office for National Statistics (ONS) found that people who have been affected financially by the coronavirus crisis are more likely to report higher than average anxiety levels. More than a third of people that took part in the Royal London research who have not taken financial advice feel anxious about their financial situation, and 65% realise how important it is to budget and to be prepared for life’s shocks.

In unusual times like these when financial uncertainty is weighing on peoples’ minds, the role of financial advice in improving wellbeing is even more apparent. It is clear that households need the reassurance, expertise and peace of mind that they are making the right financial decisions to help them weather a difficult climate and ensure they are well prepared against a potential further crisis.

Are you worried about your finances?

We’re experiencing one of the biggest financial crises of the last 100 years so it’s no surprise that you may be feeling anxious and concerned about your own finances. What this research highlights is that seeking professional financial advice is vital, now more than ever.

The journey to advice looks and feels very different today – particularly for people who have yet to seek it – but with a proven direct correlation between a person’s financial and emotional wellbeing, talking to a financial adviser sooner rather than later is a must.