Originally published on FTAdviser.com
Financial advice is “intrinsically linked” to improved mental health, a study has found.
Nearly three quarters (74 per cent) of UK adults who have sought regulated financial advice are more likely to have average or above average mental health, according to research conducted by HSBC’s insurance business.
Of those who don’t seek advice, 42 per cent said their mental health has slipped below average.
The pattern is similar for those who engage in ongoing financial planning. Nearly three quarters (72 per cent) of people who review their financial plan annually benefit from average or above average mental health, whilst half (50 per cent) of those without a financial plan said they have below average mental health.
And the same again was true for those with a plan for retirement. The study found more than three quarters (77 per cent) of people with a ‘comprehensive’ retirement plan had average or above average mental health.
This compared to those without a plan, of which almost half (48 per cent) felt they had below average mental health.
“Our study [of 3,000 UK adults] confirms that financial fitness is intrinsically linked with health and wellbeing,”
said HSBC Life UK’s chief executive Mark Hussein.
“Making small changes to your financial planning today can not only have a big impact on your current wellbeing, but also improve your overall health, especially both physically and more importantly mentally in the future.”
Wren Sterling’s experience
Nick Moules, Wren Sterling’s Head of Marketing added:
“These findings are unsurprising as money is regularly cited as one of the biggest causes of stress and anxiety in the UK.
“Interestingly, this study found that many cited advice as being too expensive as a reason for not taking it. That is the challenge for independent financial advisers everywhere – to demonstrate that the value of advice is much more than simply investing money better. The consequences of having a financial plan that works towards long-term goals is a feeling of stability and being in control, which can offset stress and anxiety caused by money.
“Often we find that people who approach us for advice actually have the assets they need for the lifestyle they want in the future but without our help mapping this out for them, they would continue to worry that they didn’t have enough. From there, we can help them make more holistic life decisions that gives them more time with the family or to pursue hobbies and interests, all of which support mental health.”