Do I really need a financial planner?

Do I need a financial planner? Yes you do or even access to financial planning tools!

In 2023 Broker’s Ireland conducted a survey with a sample size of 1,000.  This survey was conducted Nationally across Ireland and representative by age, gender, region and socio economic demographics.

The underlying purpose of this survey was to compare the financial health of those who work with a financial advisor to those who do not and the results were compelling as set out in the table below.  Indeed one of the hypothesis of the report was that “Making informed decisions around financial matters directly correlates to improved financial outcomes.”

	Have worked with a financial advisor	Have NOT worked with a financial advisor	Improved by working with a Financial Advisor
Own a pension	80%	35%	+25%
Average pension size	€130,525	€84,230	+55%
Own a life assurance policy	52%	23%	+29%
Average level of life assurance	€147,426	€100,373	+47%
Know about Sustainable Investing	69%	15%	+54%
Average Value of savings &  investments	€71,332	€44,754	+59%
Confident about financial security in retirement	33%	19%	+14%

 Furthermore:

·        93% cite a good return on money as the top priority when choosing savings/investment products for those who have sought financial advice.

·        58% feel more confident and in control of their finances having used financial advice.

·        38% of adults in Ireland have used financial advice.

But why does working with a Financial Advisor matter? Financial advisers don’t just recommend products, they help people to:

·        Set realistic goals

·        Maximise tax reliefs

·        Avoid costly mistakes

·        Stay on track through life’s changes

And in Ireland, the data shows that advice isn’t just helpful, it’s transformative.  Adding to this our own house view is that those who take financial advice in their earlier years are more financially resilient and secure.

As we get older we are more likely to seek out financial advice but time and time again we hear the phrase “If I knew then what I know now”. 

 This is because the younger you are:

·        The more you benefit from compounded investment returns on pensions, investments and savings.

·        You tend to have a higher investment risk appetite, this is in part due to having longer time horizons.

·        Compounding good behaviours, by having more savings and provisions you may tend to borrow less.

·        The cost of implementing life assurance is not just cheaper on average on a monthly basis but over the full terms of their plans.  This is due to age and more than likely health being on your side.

Irish Life found that 88% of people who received financial advice, regardless of their age, reported reduced financial stress and greater confidence. Yet many still believe advice is “only for the wealthy.”  We believe that such advice should be available to all of those who wish to access it and not cost inhibitive – this is why we are developing the App.

 So in summary: taking financial advice is a smart investment!  It helps people make better decisions, avoid costly mistakes, and build real wealth over time. 33% of retirees who didn’t seek advice said they regretted it later – don’t be in that group!