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People who use a planner are happier about their finances, survey finds

Many people believe they don’t need a financial planner because they can manage their own finances, but research shows that those who use an advisor have a higher level of satisfaction with their overall financial position.

This is according to a recent survey, the Financial Security Barometer, conducted by Ispos Markinor for financial planning company acsis to gain insight into the need for financial planning and its connection to financial well-being. The survey found that those who use a financial planner had more diversified investments than those who did not use one. It also showed that they had more life cover, short term insurance and medical scheme cover, and were making better provision for their retirement.

Having enough risk cover secures your financial well-being by ensuring that you are prepared for adverse events such as ill-health, the death of a breadwinner and/or the loss of your possessions. A financial adviser can help you to establish that you have all the areas covered.

In addition, the survey found:

74 percent of the group who use an advisor had updated their wills in the past year, whereas only 51 percent of those who do not use an adviser had done so. It is important to ensure your will is up to date because of changes to legislation or your family circumstances could necessitate that you adjust the terms of your will.

Besides being more financially prepared, the survey found that people who use a financial planner generally feel more financially secure than those who do not.

The survey also shows that the retirees who took part in the survey were generally more financially secure than those who were still saving for retirement. The financial security of the retirees were influenced by their experience or enjoyment of the fruits of what they had provided for retirement, as well ask their knowledge of their financial affairs, the survey found.

The findings have highlighted that people who use an expert financial adviser to develop a financial plan are significantly empowered and this contributes to their financial well-being.

Personal Finance