Market View From the Top from Spicers CEO Gordon Noble-Campbell

Emotional well-being improves with having a financial plan…

29 October 2010

If you want to feel better about the future, you should get a financial plan.

The Financial Planning Standards Council this week released the results of the first phase of a five-year study which confirms that those who’ve engaged in comprehensive, integrated financial planning are significantly more optimistic about their personal well-being than those who haven't.

60% of those surveyed who have no financial plan said they worry a lot about their financial situation compared to 44% who have a plan in place.

72% of the survey respondents said they felt the people they cared about would be financially looked after by having a financial plan, while 64% cent said they felt prepared to manage through tough economic times through having one.

61% said a financial plan gave them peace of mind, 57% said it’s improved their ability to save, while 54% said they felt prepared in the event of an unexpected financial emergency. 51% said they felt on track to reach their financial goals.

Interestingly, according to the survey, the most important goal of people with a financial plan was to be able to take the holiday they want every year, followed by: having enough discretionary income to lead the life they want; making sure there is enough money to pay for their children's tertiary education; helping out their children with a major purchase; and retiring in the lifestyle they want.

The study also found that 61% of those with a comprehensive plan felt confident of their financial situation in retirement compared to only 27% with no financial plan, and 46% who only had limited financial advice.