More than three quarters (77 per cent) of people who receive financial advice believe their adviser has made them financially better off, Standard Life has revealed, showing the “significant” impact financial advice can have on finances and financial wellbeing.

The firm’s latest research from its Retirement Voice report showed that 37 per cent of advised individuals estimate they are £40,000 or more better off thanks to professional financial support.

It also found that 13 per cent estimated that their financial adviser has helped grow the total value of their pension, savings and investments by £30k-£40k, while 14 per cent think advice has increased their finances by £20k-£30k.

Additionally, the research suggested that ongoing advice delivers several benefits compared to taking advice on a less regular basis.

Indeed, among those who have an ongoing relationship with an adviser, 82 per cent said advice has improved their finances, compared to 72 per cent of those who only speak to an adviser on an ad hoc basis.

Meanwhile, the research indicated that those who have frequent contact with an adviser are more likely to consider that they deliver value for money (84 per cent) than those who take advice as and when they need it (79 per cent).

Those who have frequent contact with an adviser are also more inclined to believe that their standard of living is better because of their adviser’s services (74 per cent) than those who are not in as regular contact (65 per cent).

The research also highlighted the power of ongoing advice in improving people’s financial wellbeing, as 77 per cent said they felt confident they knew their options for using their pension savings, compared to 73 per cent overall.

Among retirees, those who take advice when needed are twice as likely to worry that they are making bad decisions with their retirement finances (21 per cent) as those who are in regular contact with their adviser (10 per cent).

Commenting on the research, Standard Life head of intermediary advised distribution, Warren Bright, said: “In today’s tough economic climate, saving for day-to-day expenses, never mind the future, can be difficult.

“Professional advice helps to deliver tangible benefits for those speaking to an adviser - not only in monetary terms, but also in levels of confidence and financial wellbeing.”

Bright noted that those with an ongoing relationship with an adviser are more likely to enjoy these benefits than those who take advice on an ad-hoc basis, or not at all.

He added that with “significant structural changes” to the advice framework pending, the introduction of targeted support and anticipated moves to address adequacy, the role of professional advisers in helping build the financial security and confidence of more UK savers has “never been more important”. 

“Professional, personalised advice will continue to play an important role in helping people make smart financial decisions, feel more secure about their financial position and achieve their long-term goals,” he said.

Standard Life's Retirement Voice report previously revealed concerns about adequacy, a lack of state pension knowledge, confusion on pension priorities, and uncertainty about when to retire.

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