When you first think about financial planning, there’s a good chance that you may focus on the money benefits.
For instance, you might want to invest your wealth, reduce your tax liability, or accumulate a pension suitable for a comfortable retirement.
These are, of course, all important reasons to seek financial advice. Yet, working with a planner could also offer several non-financial benefits that are equally valuable.
Indeed, Vanguard found that 86% of advised clients said the advice they received gave them greater peace of mind when thinking about their finances compared to managing them alone.
With this in mind, continue reading to discover five fascinating non-financial benefits of working closely with a planner.
1. You may find you have more free time
It’s fair to say that managing your finances can take up a considerable amount of your time.
You may need to keep a close eye on multiple pension funds or stay up to date with rule changes that could affect your wealth, all of which can be incredibly time-consuming.
If you’d rather spend your time elsewhere, financial planning can help. The research above from Vanguard found that 76% of clients said advice saved them time, with a median saving of two hours a week. This could equate to more than 100 hours each year.
This is time you could be spending with your loved ones or simply enjoying a hard-earned retirement.
2. You could experience less stress
Financial concerns can be a source of significant stress, and you may find that you constantly worry about whether you’re saving enough for retirement or if your investments are performing as well as they should be.
And during periods of market volatility or high inflation, these concerns can weigh even more heavily on your mind.
As an example, research from Aegon suggests that people without a retirement plan are four times more likely to feel stressed about their long-term finances compared to those with bespoke plans.
A financial plan could help to reduce any uncertainties surrounding your wealth.
Indeed, by understanding what you have and the steps you need to take to achieve your long-term goals, you could feel more in control of your financial future.
3. You might make more informed decisions
Since there often isn’t a single “right” answer when it comes to managing your wealth, financial decisions can feel especially challenging.
For instance, say you want to retire earlier than you had initially intended. While this might seem like a relatively straightforward question of whether you have enough saved, you may need to think about tax concerns, increasing contribution levels, and later-life care.
A financial planner could help you understand whether an earlier retirement is realistic by reviewing your assets and comparing them to your long-term goals.
They can also use cashflow modelling software to show how retiring a few years earlier could affect your income later down the line.
This could ultimately allow you to make more informed decisions based on fact, rather than feeling.
4. You could gain more peace of mind
With so many moving parts in a financial plan, it can be difficult to know whether everything is working together as it should.
You may have several questions on your mind, such as whether your loved ones will be protected if something should happen to you or if you’re making the most of all available tax allowances.
Together, these can create a constant sense of uncertainty, but a financial planner can help unify your approach.
For example, your planner could review your:
- Pensions
- Savings
- Investments
- Protection policies
- Estate plan
Then, they could consider how this fits into your wider strategy, helping you understand whether your current approach would support your desired future.
This reassurance can offer significant peace of mind, especially during major life events, such as receiving an inheritance, entering retirement, or supporting loved ones financially.
5. You could cut through any financial jargon
Even if you find relevant information to help you manage your wealth, complicated language can make it incredibly challenging to understand fully.
According to This is Money, 17% of people believe investing is too complicated to get into, partly due to the daunting jargon.
Terms such as “equities” and “bonds” can all sound complex if you haven’t properly encountered them before. This can quickly make investing feel far more intimidating than it needs to be.
A financial planner can remove some of this confusion by explaining any vital concepts in clearer terms, making managing your wealth feel much more accessible.
Over time, this could help you feel more confident engaging with your finances and understanding why certain recommendations have been made.
Get in touch
We could help you build a financial plan that gives you the confidence and peace of mind needed to manage your wealth.
Please email us at info@blueskyifas.co.uk or call us on 01189 876655 to find out more about how we can support you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
The Financial Conduct Authority does not regulate estate planning, tax planning, or cashflow planning.