Accessing professional financial advice will deliver a $150,000 windfall, according to new analysis.
Aware Super research that involved more than 100,000 of its fund members found that those who received professional financial advice retired with a super balance 22 per cent higher on average than those who didn’t.
This equates to around $150,000 extra in retirement.
The research also found those who had received advice made nearly 2.5 times as many voluntary contributions as those who hadn’t; were able to withdraw funds at a 33 per cent higher drawdown rate and consolidated twice as much super from other accounts.
In other words, those who received financial advice were much better off, says Aware Super CEO Deanne Stewart.
“Advised members report feeling greater confidence about their financial future, feel that they have more retirement options, and generally feel more informed about their finances,” she says.
“This new research has been an invaluable step forward in using data to firstly help establish a baseline for what value our members can realise from taking financial advice, and then looking at how we can maximise access to advice services in a way that helps our members create their best possible retirement outcomes.”
The retiree-specific findings echo broader studies that found those who get professional financial advice at any time of life measure higher in many quality-of-life aspects than those who don’t.
The Financial Planning Association of Australia (FPA) found that people who received financial advice reported a better family life; better physical and mental health and had more confidence in their ability to live a comfortable retirement.
Sarah Abood, FPA CEO, says the results show how valuable financial advice can go beyond simply boosting the number in your bank account.
“On average, advised Australians rate their overall life satisfaction at 7.3 out of 10 – significantly higher than the 6.4 rating from the unadvised,” she says.
“Australians with an active relationship with a financial planner are better off in multiple ways. They suffer less financial stress, enjoy a higher quality of life, have more financial confidence, and are more satisfied with their wealth.
“Regardless of the client’s wealth or age, the study found advice promotes and enables better quality of life.”
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