The Financial Services Council surveyed 2,000 New Zealanders in March 2020 and found those people that had received financial advice had 4% better investment returns and had 3.7% higher savings than those who hadn't.
To quantify what 4% better investment returns means, take a a 25 year old that had taken financial advice and was saving $2,500 pa, they would be better off at the age of 55 by $1.5 million than if they didn't take advice.
The survey found on average Kiwisaver balances were 50% higher for people who had taken advice. They were also more likely to have insurance cover and greater peace of mind and confidence in making financial decisions.
The research found that under 20% of New Zealanders get financial advice, while 40% don’t see any benefit to getting professional financial advice, and 75% don’t recognise the positive impact that financial stability has on their mental wellbeing.
The survey also revealed that people with an adviser had life insurance of $189,708 on average, compared to $167,770 for those without. They had more than $51,000 in income protection versus $35,000 for those with no adviser.