4 financial planning benefits your clients should be aware of on Stress Awareness Day

On 1 November 2023, individuals and institutions around the UK will mark Stress Awareness Day.

This day is designed as a reminder that stress can cause both mental and physical challenges to anyone who experiences it, and is the ideal opportunity for everyone to reflect on their stressors and try to resolve them.

As financial planners, we understand that financial stress can come in many different forms. What your clients may not know, as they reach new milestones in their lives, is that having a seasoned expert in their corner could reduce their financial stress.

Keep reading to learn four important financial planning benefits that your clients should know about this Stress Awareness Day.

1. Instilling investment knowledge and confidence

One aspect of your clients’ financial plans that may have proved stressful recently is investing.

Although it’s almost four years since the Covid-19 pandemic arrived, its adverse effects on the stock market and world economies are still being felt.

This volatility may have had a knock-on effect on your clients’ confidence, and could have prompted them to cash in shares prematurely or even stop investing altogether.

If your clients are experiencing investment anxiety, working with a financial planner could offer them the support they need. We can take a look at their existing assets and offer insights into diversification, a suitable time frame, and the state of the market in general.

Being better informed might mean that your clients feel more confident when investing their money, and could help them to see the positives of long-term investing, even in times of short-term volatility.

2. Soothing anxiety around the cost of living crisis

According to Mind, one of the UK’s leading mental health charities, 48% of people in England and Wales have had their mental health negatively affected by the cost of living crisis.

If your clients have already let you know that the cost of living crisis is causing them to worry about their finances, now could be the time to introduce them to a financial planner. And, even if they haven’t mentioned it so far, opening up a conversation around the cost of living crisis could help you determine whether they need additional support.

A financial planner can help to mitigate stress by:

• Using cashflow modelling to project the potential effects of inflation on your clients’ finances
• Reminding them of the temporary nature of high interest rates and inflation
• Suggesting suitable routes for those struggling, such as equity release, to name but one example.

While the cost of living crisis is likely to be temporary, your clients don’t need to bear the stress of it alone.

3. Mediating family conversations around inheritance

Discussing inheritance plans can be tricky for all families, no matter how close-knit they are.

If your clients are currently writing their will, or updating any other financial documentation, they may become stressed about discussing their legacy choices with their loved ones.

Indeed, many individuals procrastinate discussing their estate plans with their families, perhaps out of concern that conflict could break out as a result.

A Scottish Widows study of 2,000 people, published by MoneyAge, reveals that 57% of parents have never discussed their will with their adult children. What’s more, 24% of adults have not talked about making a will with their partner or spouse.

Although it may be tempting to put off these essential discussions, doing so could leave your clients’ wealth in danger later on. Not only might an unclear or surprising will be emotionally difficult for your clients’ families to handle later, but a legal dispute could be a hugely costly endeavour that weakens the value of their estate.

Fortunately, a financial planner can expertly navigate family estate planning conversations.

Meeting with an impartial professional who can advise on all the financial elements of estate planning might help your clients to finally initiate these all-important conversations.

4. Creating a robust retirement plan

One common stress factor for those aged 40 and above is retirement.

According to research published by City A.M., 58% of over-40s are “anxious” about retiring due to concerns that they may not have enough money to last their whole lifetime.

As such, your clients could be worried or unsure about:

• The age at which they can afford to retire
• How much they need to sustain their whole retirement
• Whether or not they can afford to give funds to children and grandchildren
• Having enough money to pay for care later in life
• If they can afford to remain in their family home throughout retirement.

Entering their 40s, 50s and 60s with these concerns on their minds could cause your clients immense stress.

Moreover, connecting them with a financial planner could help provide data-informed answers to their questions.

Our cashflow modelling software can take their current circumstances into account and form projections as to whether they can afford their ideal retirement. We’ll include additional stress factors, such as debt, inflation, and care costs, to ensure your clients feel confident that they’ve covered all bases.

Plus, an expert can help provide them with a robust financial plan that serves as a foundation for their upcoming retirement.

Get in touch

Financial stress is sometimes unavoidable, but it can be reduced by forming a relationship with a financial planner who puts your clients’ goals first.

To learn more about how we can help on Stress Awareness Day and beyond, email enquiries@prosserknowles.co.uk or call 01905 619 100.

Please note

This article is no substitute for financial advice and should not be treated as such. To determine the best course of action for your individual circumstances, please contact us.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

The Financial Conduct Authority does not regulate estate planning, tax planning, will writing, or cashflow planning.