Financial Planning leads to better outcomes – beyond wealth, but myths persist

Johannesburg: New study shows South Africans who work with CERTIFIED FINANCIAL PLANNER® professionals have a better quality of life, enjoy more financial confidence and resilience, and are more satisfied with their financial situation.

Financial Planning leads to better outcomes – beyond wealth, but myths persist

As consumers continue to feel the pressure of high inflation, rising interest rates, living costs and the cost of housing, a new study launching today on World Financial Planning Day has found that South Africans who work with a financial planning professional are better off, with consumers who work with a CERTIFIED FINANCIAL PLANNER® professional reporting the best outcomes.

While 3 in 4, clients of financial planners are highly satisfied with their wealth, compared to 2 in 3 unadvised consumers, the study has found that approximately 60% of clients of CFP® professionals feel financially secure and 90% feel tangibly better off.

The FPSB Value of Financial Planning Research 2023, undertaken for Financial Planning Standards Board Ltd. (FPSB) and the Financial Planning Institute of Southern Africa by independent research firm MYMAVINS, surveyed over 1000 advised and unadvised South Africans aged 25 and over.

The study examines the value of financial planning, measuring the financial and non-financial impact of financial planning across quality of life, financial confidence, financial satisfaction and experienced value, while debunking the myths surrounding financial planning and analyzing the future of the profession.

While unadvised South Africans recognise improved financial well-being and peace of mind (56%), and improved financial decision making confidence (55%) as key benefits to seeking financial planning, only 1 in 3 South Africans perceive it as too expensive (36%) and hard to find someone trustworthy (38%).

However, close to 9 in 10 (87%) clients of CFP® professionals say the value of financial planning outweighs the cost, with almost everyone (94%) advised by a CFP® professional reporting they trust their financial planner to act in the best interests of the client. 

Lelané Bezuidenhout, CFP®, CEO of the Financial Planning Institute of Southern Africa says: “Obtaining professional financial advice from a CFP® professional is important as they have specialised knowledge and expertise in various financial planning areas. 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. 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.  

Dante De Gori, CFP, Chief Executive Officer, FPSB says, “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.” 

“The findings in this global study illuminate a compelling reality: the immense value that CFP professionals bring in supporting clients’ financial needs amid times of uncertainty, reinforcing the reputation of CFP certification as the global symbol of excellence in financial planning,” De Gori added.

About the Financial Planning Institute of Southern Africa (NPC) (FPI)

FPI is the license holder of the CFP mark in South Arica via an affiliation agreement with the FPSB.  FPI is furthermore a South Arican Qualifications Authority (SAQA) Recognised Professional Body as well as a Recognised Controlling Body (RCB) of the South African Revenue Services (SARS). For more about the FPI, see our Company Profile here.

About FPSB

FPSB manages, develops and operates certification, education and related programs to benefit the global community by establishing, upholding and promoting worldwide professional standards in financial planning. FPSB demonstrates its commitment to excellence with the marks of professional distinction – CFP, CERTIFIED FINANCIAL PLANNER and . FPSB and the FPSB global network administer CFP certification and other programs in the following 27 territories: Australia, Austria, Brazil, Canada, Chinese Taipei, Colombia, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Japan, Malaysia, the Netherlands, New Zealand, People’s Republic of China, Peru, Republic of Korea, Singapore, South Africa, Switzerland, Thailand, Turkey, the United Kingdom and the United States. At the end of 2022, there were 213,002 CFP professionals worldwide. For more, visit fpsb.org.

FPSB owns the CFP, CERTIFIED FINANCIAL PLANNER and (the CFP Marks) outside the United States and permits qualified individuals to use the marks to indicate that they meet FPSB’s initial and ongoing certification standards and requirements. CFP professionals may use the CFP marks in the territory or region in which they are certified.

About CFP Certification

CFP certification is the global symbol of excellence in financial planning and represents financial planners who commit to standards of competency and ethics, and to putting clients’ interests first. The CERTIFIED FINANCIAL PLANNER credential represents financial planning professionals who commit to better serving their clients through rigorous international standards, ethical practices and lifelong learning.

About the Value of Financial Planning Report 2023

The descriptions and statistics in this report are based on insights from a global research study undertaken for Financial Planning Standards Board Ltd. (FPSB) by independent research firm MYMAVINS. The large quantitative study undertaken in February 2023 involved an online survey of 15,332 respondents, over the age of 25 years, earning over US$60k or holding over US$35k in investable assets or equivalent in other regions.

The survey included 1005 South African respondents over the age of 25 years. These respondents earn over one million rand a year or hold more than R600 000.00 in investable assets.

The sample included both advised and unadvised consumers. Advised consumers are those who are currently working with a financial planner, those who seek financial advice as needed and those who have received financial planning advice in the past three (3) years.

Unadvised consumers, on the other hand, are those who have never received financial planning advice from a financial planner or have not received financial advice in the past three years.

The study also analysed those 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.

FPSB’s network of professional financial planning bodies in the following territories participated in the global research: Australia, Canada, Chinese Taipei, Hong Kong, India, Ireland, Malaysia, the Netherlands, New Zealand, People’s Republic of China, Republic of Korea, Singapore, South Africa, the United Kingdom and the United States.