A majority of advice clients do not believe that having the lowest possible premium for risk insurance defines a successful advice experience, research by IOOF has found.
The research, titled The True Value of Advice – which drew on a survey of 521 consumers – found that only four per cent of respondents consider lower insurance premiums to represent the definition of a successful advice experience.
However, 76 per cent of respondents said that achieving their lifestyle goals was a good outcome of their advice experience.
Speaking to Risk Adviser, general manager of distribution for IOOF, Renato Mota, said the findings emphasise that financial advice, for clients, is really about meeting lifestyle goals.
"I think, as an industry, we have done a terrific job in focusing on the technical aspects of providing financial advice, whether that be technical expertise, knowledge and value for money. But our position would be that we have under-emphasised the lifestyle aspects of financial advice," he said.
IOOF also found that clients who received advice had “significant” emotional benefits and enhanced wellbeing in comparison with those who did not get advice.
Respondents to a survey claimed to have 21 per cent more peace of mind concerning their financial future and felt 20 per cent more financially secure than those who did not receive ongoing professional advice, Mr Mota said.
"What was surprising, however, was how much financial advice impacts happiness generally – respondents reported 13 per cent greater levels of overall personal happiness," Mr Mota said.
"Clearly, overall personal happiness and financial planning are inextricably linked, and financial planners play a role in their clients' lives far beyond improving financial management and investment returns."
Mr Mota added that advisers who recognise this "will be the ones to succeed".
"IOOF stands ready to help financial planners look at the big picture, reassess how they interact with clients, and embrace a holistic approach to financial planning," he said.