3 ways that getting financial advice can actually support your mental health

3 ways that getting financial advice can actually support your mental health

Posted on January 19, 2021 at 2pm

If you have been struggling with your mental health recently, you aren’t alone. According to a study by insurance provider Aviva, around one-third of UK adults aged 45-54 feel that their mental wellbeing has suffered due to the pandemic.

The disruption that the coronavirus outbreak has caused to our everyday lives has negatively impacted many people’s mental health. One of the biggest issues it has caused is the heightened anxiety about money, with millions of people having been made redundant or furloughed.

However, studies have found strong links between receiving financial advice and improved mental wellbeing. Read on to find out why seeking financial advice can actually support your mental health.

Clients who have been advised have a better understanding of financial products

One of the clearest benefits of receiving financial advice is gaining a greater understanding of your finances and financial products.

According to a report by Royal London, individuals who had received advice reported a much greater understanding of financial products and issues than those who had not. This translated into lower levels of anxiety and greater confidence, as financial decisions which may have seemed complicated were now much easier to understand.

Having a greater understanding of financial products can also enable you to make better-informed decisions about your finances, which can help you to grow your wealth more effectively.

Another study by the International Longevity Centre (ILC) found that clients who received professional advice between 2001 and 2006 saw a boost to their total wealth of £47,000 over the course of a decade.

One of the main reasons behind this growth was the confidence that clients felt following advice, which made them feel more able to take greater risks with their investments. The study found that this greater tolerance to risk translated into an increase of £31,000 in pension wealth and £16,000 in non-pension wealth, on average.

Working with a financial adviser can give you more confidence in your decision-making and emotional security in the knowledge that you’re better able to take risks to grow your wealth.

Receiving financial advice can impart greater feelings of confidence and control

One of the biggest ways that the pandemic has negatively affected mental health is by the disruption it has caused to many people’s finances. According to a study by insurance provider Aviva, almost two-fifths of Brits have reported trouble sleeping due to financial worries caused by the pandemic.

If you want to gain more control over your finances, speaking to a financial adviser can help you to avoid sleepless nights. As the Royal London study highlights, two of the biggest benefits of seeking professional advice were the greater feelings of control and peace of mind that you can gain from it.

Source: Royal London

As you can see from the charts, receiving financial advice makes a noticeable difference in improving feelings of control and stability. It also has a marked effect in reducing anxiety, something which can be essential for mental health at a time when the economic effects of the pandemic can make the future uncertain.

If you want to gain more control over your finances and lay many of your financial worries to rest, working with an adviser can be a great way to do so.

Regularly advised clients felt the emotional benefits more strongly

While receiving financial advice has many benefits for mental wellbeing, studies show that regular contact with your adviser can produce even greater effects.

The study indicates that individuals who know their adviser well or, better yet, speak to them regularly, have lower levels of anxiety as well as higher levels of confidence regarding their finances.

The study by Royal London found that individuals who had an ongoing relationship with their financial adviser felt more empowered to make well-informed decisions with their finances than those who only rarely sought advice.

This translated into greater feelings of financial stability and confidence that they could absorb economic shocks without them having a significant impact on their long-term goals.


Source: Royal London

Speaking with your adviser regularly may yield greater benefits because it helps you to build up trust much faster and more effectively than occasional meetings.  According to the study, clients who rarely spoke with their advisers tended to view their interactions as more transactional than those who saw them often.

Knowing that you can trust your adviser can be a good way to reduce your financial anxiety and instil a sense of security that you’re making informed decisions with your finances in these uncertain times.

Get in touch

If you want to feel empowered in your financial decision-making, we can help. Email enquiries@prosserknowles.co.uk or click here to request a call back from one of our advisers.

Stay in touch

If you would like to keep up to date with current industry trends or receive details of our product developments, seminars, events and newsletters, just fill in your details below.

News Feed

Guide: Your guide to scams

Technology has made it easier than ever for scammers to target victims, and the tactics they use are becoming...

Guide: The history of investing and what you can learn from the past

Investing has been around for centuries and the basics haven’t changed as much as you might think. Technology...

Everything your clients need to know about using their Business Asset Disposal Relief

If you have clients who are looking to sell their business in the near future, they may be expecting to have t...

5 easy ways to make your home more eco-friendly

In recent years, many ordinary Brits have taken an interest in what they can do to help reduce their carbon fo...

Common Covid scams and 5 practical ways you can stop fraudsters stealing your money

If you’ve been pestered by spam calls and messages in recent months, you aren’t alone. According to figures re...

How an 18th-century farmer’s advice can help you to lower your risk when investing

If we told you that a farmer’s advice can help you to protect your investment portfolio, you might wonder if w...

3 key reasons why your clients should put a Lasting Power of Attorney in place now

While nobody likes to think about the possibility that there could be a time when they are no longer able to m...

Why you should be wary of social media trading tips

In recent months, there has been an explosion of videos on social media sites such as TikTok that purport to o...

Everything you need to know about financial planning as a couple

When you’ve found someone whom you love, and have settled down into a serious relationship, it’s time to start...

3 strong reasons not to hold too much of your wealth in cash

When times are tough, it can be tempting to hold more of your wealth in cash, since this makes it much more ea...

Guide – Your retirement choices: how to generate an income in later life

Since Pension Freedoms were introduced in 2015, retirees have had more choice when they access their pension....

Why a pension could be the best way for your clients to extract profit from their business

When trying to extract money from a client’s business, there are a variety of obstacles to overcome in the for...

7 of the best days out for National Walking Month

When your day-to-day life is stressful, sometimes there’s nothing more enjoyable than getting out into the cou...

Everything to consider if you’re thinking about overpaying your mortgage

At a time when record low interest rates make saving seem like an unattractive option, if you have spare cash...

5 important financial lessons the pandemic has taught us

The coronavirus pandemic has financially impacted millions of Brits in recent months, and many households have...