Financial wellbeing is closely aligned with the control people have over their financial future. People with high levels tend to meet their long-term financial goals and have a clear idea about what makes them happy and what they want from life. This allows them to identify and achieve more meaningful life goals before and during retirement.
Balancing mind and money
People with a financial adviser are over four times more likely to display high levels of financial wellbeing, a new study1 has determined.
Based on a survey of 10,466 UK residents, the study highlighted that the key to building financial wellbeing is to have both ‘mindset’ and ‘money’ building blocks. Those with the best financial wellbeing scores did well on both fronts.
Are you an ‘all-rounder’?
Respondents with the best possible combination of scores were classified as ‘all-rounders’, with this group financially comfortable and enjoying life now while also planning for their future happiness. Such people are equipped to achieve the perfect balance between understanding the importance of both money and mindset.
Wellbeing and advice aligned
Unsurprisingly, the data highlighted that people who seek professional financial advice are far more likely to fit into the ‘all-rounder’ category, when compared with those who do not. Only 10% of those who had never received financial advice were lucky enough to combine a positive money mindset with healthy finances, compared to 44% of those who have an ongoing relationship with their adviser.
The value of investments and income from them may go down. You may not get back the original amount invested.