South Africans who collaborate with Certified Financial Planner® professionals experience an enhanced quality of life, greater financial confidence and resilience, and increased satisfaction with their financial circumstances, a new survey shows.
Launched on World Financial Planning Day (4 October), the FPSB Value of Financial Planning Research 2023 found that South Africans who work with a financial planning professional are better off, and consumers who work with a CFP® professional report the best outcomes.
The study was undertaken by independent research firm MYMAVINS for the Financial Planning Standards Board (FPSB) and the Financial Planning Institute of Southern Africa (FPI).
The South Africans interviewed were among 15 332 respondents who formed part of a global quantitative research study undertaken in February 2023. The respondents were over the age of 25 and earn more than $60 000 or hold more than $35 000 in investable assets or equivalent in other regions.
The survey included 1 005 South Africans who earn more than R1 million a year or hold more than R600 000 in investable assets.
The sample included advised and unadvised consumers. The study also analysed consumers who work with a CFP® professional. Financial planners who attain CFP® certification have committed to rigorous standards of competency and ethics in financial planning.
According to the study’s findings, three in four clients of financial planners are highly satisfied with their wealth, compared to two in three unadvised consumers.
When it comes to the clients of CFP® professionals, about 60% feel financially secure and 90% feel tangibly better off.
The study also found that although unadvised South Africans recognise improved financial well-being and peace of mind (56%), and improved financial decision-making confidence (55%) as the key benefits of financial planning, one in three perceive it as too expensive (36%) and believe it is hard to find someone trustworthy (38%).
But almost 9 in 10 (87%) clients of CFP® professionals say the value of financial planning outweighs the cost. Almost everyone (94%) advised by a CFP® professional report they trust their financial planner to act in their best interest.
Lelané Bezuidenhout, the FPI’s chief executive, says 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.
“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,” Bezuidenhout says.
Dante de Gori, the chief executive of the FPSB, says the findings of the global study underscore the immense value that CFP® professionals bring in supporting clients’ financial needs during uncertain times.
“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,” De Gori says.
