Those who take financial advice are “substantially better off”, with savings of 60 per cent greater than those who have not sought advice, according to a recent survey by Brokers Ireland.
The representative body for insurance brokers conducted a nationwide survey of 1,000 people through iReach Insights to compile its 2023 report on the value of professional financial advice.
It found that the amount in savings/investments for those who have used a financial adviser is €71,332, which is 60 per cent higher than €44,754 on average among those who have not sought advice.
The research also found that the average pension pot is valued at €130,525 for those who sought financial advice, 55 per cent higher than the average of €84,230 for those who have not.
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The report added that 80 per cent of those who take financial advice own a pension, compared to 35 per cent who have not.
In terms of life assurance, those who sought financial advice have policies 47 per cent higher in value than their counterparts who did not seek advice, with average values of €147,426 and €100,373 respectively.
“One of the thorny issues in financial advice is that it’s often not until people seek professional advice that they begin to realise the importance it can make in their lives. And it’s not only in financial terms but it also brings a very strong sense of security and confidence, as this study shows,” said Rachel McGovern, director of Financial Services at Brokers Ireland.
Overall, 38 per cent of adults in Ireland have used financial advice. The survey showed that retired adults are more likely to have consulted a financial adviser (52 per cent) compared to those who are still working (36 per cent).
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The report highlighted a dip in consumer sentiment across some areas of financial security and confidence since 2021, which Brokers Ireland said was likely attributable to inflation, increased cost of living and continuing geopolitical tensions.
Ms McGovern said that in a highly digitalised world where technological advances and AI were increasingly impacting society, consumers needed to keep their finances on track and proactively identify financial opportunities and potential risks and plan for both.
