Financial Planning leads to better outcomes – beyond wealth, but myths persist

New study shows South Africans who work with CERTIFIED FINANCIAL PLANNER® professionals have a better quality of life, enjoy more financial confidence and resilience, and are more satisfied with their financial situation.

As consumers continue to feel the pressure of high inflation, rising interest rates, living costs and the cost of housing, a new study launching today on World Financial Planning Day has found that South Africans who work with a financial planning professional are better off, with consumers who work with a CERTIFIED FINANCIAL PLANNER® professional reporting the best outcomes.

While 3 in 4, clients of financial planners are highly satisfied with their wealth, compared to 2 in 3 unadvised consumers, the study has found that approximately 60% of clients of CFP® professionals feel financially secure and 90% feel tangibly better off.

The FPSB Value of Financial Planning Research 2023, undertaken for Financial Planning Standards Board Ltd. (FPSB) and the Financial Planning Institute of Southern Africa by independent research firm MYMAVINS, surveyed over 1000 advised and unadvised South Africans aged 25 and over.

The study examines the value of financial planning, measuring the financial and non-financial impact of financial planning across quality of life, financial confidence, financial satisfaction and experienced value, while debunking the myths surrounding financial planning and analyzing the future of the profession.

While unadvised South Africans recognise improved financial well-being and peace of mind (56%), and improved financial decision making confidence (55%) as key benefits to seeking financial planning, only 1 in 3 South Africans perceive it as too expensive (36%) and hard to find someone trustworthy (38%).

However, close to 9 in 10 (87%) clients of CFP® professionals say the value of financial planning outweighs the cost, with almost everyone (94%) advised by a CFP® professional reporting they trust their financial planner to act in the best interests of the client.

Lelané Bezuidenhout, CFP®, CEO of the Financial Planning Institute of Southern Africa says: “Obtaining professional financial advice from a CFP® professional is important as they have specialised knowledge and expertise in various financial planning areas. Certified Financial Planners create personalised financial plans, helping clients achieve their financial goals, manage risks, optimise tax strategies, and operate with a fiduciary duty to prioritise the client's best interests. The findings of the global and local study show that consumers should entrust their financial planning to a professional, and more specifically, a CFP® professional.

Dante De Gori, CFP, Chief Executive Officer, FPSB says, “In this current volatile climate, where unexpected events can send shockwaves through the global economy, the role of financial planning in general and of CFP professionals in particular has become even more critical in empowering consumers to make informed financial decisions and achieve their long-term goals, while enjoying a better quality of life.”

“The findings in this global study illuminate a compelling reality: the immense value that CFP professionals bring in supporting clients’ financial needs amid times of uncertainty, reinforcing the reputation of CFP certification as the global symbol of excellence in financial planning,” De Gori added.