Prudent Financial Advice


“Prudent financial advice can help lay the foundations for future financial stability and ultimately provide the desired financial freedom over the course of time. Increasingly, fewer people have the time or expertise to successfully manage their personal finances in a holistic manner, particularly as their financial circumstances become more demanding and complicated.”

This is a quote from recent research carried out by iReach Insights on the assessment of expert financial advice. The research findings clearly illustrate that those who have received prudent advice and guidance are in a stronger financial position than those who choose to handle their own fiscal affairs. Some of the key findings are stark.

  • Up to 55% of respondents who use expert financial advice own a life assurance policy by comparison to 24% who do not seek out guidance;
  • The amount in saving/investments for those who have sought financial advice is €81,890 by comparison to €53,200 for those who have not;
  • The average pension pot is valued at €128,933 for those who use financial advice and €62,600 for those who do not. This represents a +105% difference;
  • 37% of all adults in Ireland have used financial advice with 33% of this group citing financial brokers as those they trust most for prudent financial advice.

The value of expert advice clearly represents different things to different people. In the context of personal finance, it can be a return on savings or investment; future security in the form of a pension fund; protection products which provide better peace of mind and safeguards; securing a suitable mortgage; attaining personal financial goals or simply availing of better financial opportunities. With more money invested and greater financial security, people tend to feel more in control and, therefore, they have greater confidence in their finances, both now and into the future.

More than 1 in 3 (37%) have used financial advice to help with their financial needs – with 39% of women and 36% of men availing of expert advice. Employed people are also more likely to use financial advice especially those with an income over €30,000 (44%). The research identifies that those who receive financial advice are much more likely to have a pension (73%).

Making informed decisions around financial matters directly correlates to improved financial outcomes and this is evident throughout the research findings. Having better insight and knowledge into tax entitlements and contributions is also a key consideration and financial incentive. Based on the research findings, it is evident that those who receive financial advice are more likely to achieve greater personal financial benefits through guidance in pensions, saving/investment, mortgages and insurance/protection products.

MMPI has long held the view that prudent financial advice is an important part of good decision making. It is comforting to see our views substantiated by this survey. The research does not comment on how the expert advice is delivered. Talking algorithms and well-meaning robots are no substitute for face-to-face interactions with knowledgeable financial advisors. Face-to-face personal advice is MMPI’s preferred business model.

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