At face value, the role of the adviser is relatively clear – guide your clients through their investment journey, ensuring they have robust plans in place, the knowledge they need to make great decisions, and plenty of opportunities through which to realise their goals.
But recent research suggests the role of the financial adviser runs much deeper than that.
In fact, multiple studies* have concluded that financial advice has the ability to deliver positive mental health benefits. Research from IOOF found that respondents who received ongoing financial advice experienced 13% greater levels of overall happiness, a 23% increase in peace of mind, and were 19% less likely to have arguments with loved ones.
It’s important to note that this isn’t just about the accumulation of wealth. The actual process of seeking and receiving advice can enhance psychological wellbeing, particularly when it comes to two key drivers – environmental mastery and positive relationships.
The first driver – environmental mastery – gives individuals a sense of control over their life. This can reduce anxiety and depression, increase resilience and enhance life satisfaction. Given how important money is to our daily existence, it makes sense that a feeling of mastery over our finances can lead to more peace of mind.
The second driver centres on something which is fundamental to our happiness as humans – relationships. Like any good relationship, the connection between a financial adviser and their client is built upon trust.
When that trust is present, people tend to open up. For financial advisers, that could see clients discussing deeply personal and emotional topics like an impending break-up, the loss of a loved one or leaving a bequest. By being willing to sit and listen (in the same way a coach or a counsellor would), financial advisers can provide immense therapeutic value, often without even realising it.
Then there’s the mental health benefits which come from setting and achieving goals. Planning not only delivers a sense of control, but can also bring about changes in self-perception and/or self-confidence. Even the perception of progress towards a goal can provide a positive psychological boost, suggesting clients can reap huge rewards simply by engaging with their adviser.
Read our full Financial Advice Reimagined Whitepaper to find out more.
* Future of Advice Report, Financial Services Council and Rice Warner, August 2020. The True Value of Advice Survey, IOOF, 2015.
