A study commissioned by the Financial Planning Standards Board (FPSB) highlights the positive impact of working with certified financial planners (CFPs) on individuals’ financial well-being and overall quality of life. The study compares the experiences of those who navigate their financial journey independently, those who work with a financial planner, and those who seek advice from a CFP.
Improved Financial Well-being and Quality of Life
The study reveals that individuals who work with professional financial planners, especially CFPs, report feeling better off financially and experiencing an improved quality of life. They have greater financial confidence, resilience, and satisfaction with their financial situation.
Key Findings
- 80% of Indian consumers feel that professional financial planning services have enhanced their quality of life.
- 75% of consumers feel more financially confident with the guidance of a financial planner.
- 91% of retirees advised by a CFP professional believe they have enough money for a happy retirement.
- 76% of clients of financial planners are highly satisfied with their overall wealth.
- 94% of clients of CFP professionals feel financially secure, and 95% feel better off.
- 97% of clients of CFP professionals believe that the value of financial planning outweighs the cost.
Beyond Wealth
The study highlights that financial planning benefits extend beyond wealth. Clients of CFP professionals report improved family life, social life, mental health, and work satisfaction. Financial advice positively impacts mental health and overall well-being, with 60% of those working with a CFP professional reporting a positive impact on their mental health.
High Trust and Quality of Life
Clients of CFP professionals exhibit a high level of trust in their financial planners. They score the highest in terms of quality of life, with a score of 82 out of 100, compared to other financial planning professionals and the unadvised. Trust in CFP professionals is also exceptionally high, with 100% of clients trusting their financial planners to act in their best interests.
Conclusion
The study underscores the importance of professional financial planning, especially with CFP professionals, in helping individuals achieve their financial goals, enjoy a better quality of life, and cope with financial uncertainties. It reinforces CFP certification as a symbol of excellence in financial planning.
