Financial planning has become quite important these days due to rising inflation, rising interest rates and job uncertainties. A new study by the Financial Planning Standards Board (FPSB) throws light on how professional financial planning has improved the quality of life for Indian consumers. The report also gives an insight into the outcome of financial planning for retired persons. According to the study, 80 out of 100 Indian consumers feel professional financial planning services have helped to enhance their quality of life. The study also revealed that 75 out of 100 consumers feel financially more confident.
The study titled ‘FPSB Value of Financial Planning Research Report 2023’ was released on October 4 on the occasion of World Financial Planning Day.
The report also highlights the positive outcome of financial planning for retired persons. According to the report, as many as 91 per cent retirees advised by a certified financial planner (CFP) felt that they had enough money to last their retirement period.
During the launch of the report, Kishan Mishra, the CEO of FPSB India said, “Our commitment to empowering consumers with financial knowledge is unwavering. Today, we present a comprehensive study encompassing both advised and unadvised Indian consumers. It’s heartening to note that financial planning, especially when delivered by CFP professionals, plays a pivotal role in shaping a secure financial future. It is a testament to the value they bring to individuals seeking financial guidance.”
Financial Planning among Indian consumers
The report identifies key areas where financial systems have dramatically changed the lives of Indian consumers. Investment planning, wealth building, tax planning, and pension planning have emerged as the top categories where individuals have benefited the most from professional financial advisors. The survey also highlights the positive impact of budgeting on women, with 81 of the 100 women surveyed recognising and seeing greater benefits in managing budgets compared to those who were not advised by the professionals.
As consumers grapple with challenges like high inflation, rising interest rates, and increased housing costs, the report’s findings emphasise the importance of seeking professional financial advice to navigate these complexities