The Value of Expert, Professional & Impartial Financial Advice

Some question the value and cost of financial advice available and the role that financial advisers play in people's lives. However time and again, independent studies and research have illustrated the positive effects that expert, professional and impartial advice can play in helping people to achieve financial and life goals. See below for the results of such studies.

Financial Advisers help clients plan for the future, by selecting the most appropriate financial plan for them. They create strategies, having considered all relevant aspects of a client’s financial situation, to manage financial affairs to meet that client’s financial objectives and life goals. Financial advisers who regularly review client’s plans help clients stay on course to achieve their financial goals. By cutting through the maze of complexity and jargon brokers play a key role for clients by helping them do what’s right for their future. Time and again, independent surveys reveal the practical support a financial broker can give their clients and how quality financial advice makes a real difference to people’s lives.

The results show that those who use financial advisers have more valuable pensions, investments and more financial protection than those who don’t.  These results are consistent with earlier studies in the UK (The Value of Advice Report 2012 Unbiased / Standard Life), Canada (Centre for Interuniversity Research and Analysis on Organisations CIRANO) and the US. In this piece I have examined the results of the CIRANO research as well as domestic research done by PIBA.

The results of the surveys are clear. When controlling for both age and income, the net worth of advised individuals is significantly greater than those of non-advised individuals.

Those who have used a Financial Adviser:

  • have nearly double the savings and investments than those who don’t
  • are more than twice as likely to have a pension
  • are more financially protected as result of holding more financial products
  • feel more financially confident and also feel more confident about their financial future
  • are more likely to use tax-efficient planning vehicles than investors without advice

The numbers show how much better off those who get advice are than those that don’t. However, the value of professional financial advice and its effects goes far beyond this. We all want to be confident when making decisions about our finances and we want to have an adviser who understands our personal circumstances – what we have today and what we want for the future.

Surveys show that those who engage with an adviser at least once a year are by far the most financially confident group.

Those who have consulted a Financial Adviser have significantly more money in savings and investments (excluding pension and property ) than those who don’t, with an average of €37,300 compared to €20,700.

Those who have consulted a Financial Adviser tend to have planned for their income in retirement and also have a more comprehensive risk management plan in the event of death, illness, sickness or disability;

Policy / Product

Have used a Financial Adviser

Have Not used a Financial Adviser




Life Insurance



Critical Illness Cover



Income Protection Cover



None of these




The report illustrates that those who engage with a Financial Adviser are likely to have more in their pension fund (€68,294) compared to those who don’t seek financial advice.(€44,564)

The researchers draw four main conclusions from the econometric analysis in the CIRANO study, as described below; 

  1. Advice has a positive and significant impact on financial assets after factoring out the impact of close to 50 socio-economic, demographic and attitudinal variables that also affect individual financial assets.

The study reveals that the presence of a financial advisor, contributes in a positive way to net worth when the impact of all other variables is factored out. Furthermore, the longer the relationship between the adviser and client exists, the greater the differential between the level of assets the advised client has over the non-advised individual.

  1. The positive effect of advice on wealth accumulation cannot be explained by asset performance alone: the greater savings discipline acquired through advice plays an important role.

The greater accumulation of wealth by advised investors is down not only to the asset performance, but also to the discipline that he helps impose on the advised client.

  1. Advice positively impacts retirement readiness, even after factoring out the impact of a myriad of other variables.
  2. Having advice is an important contributor to levels of trust, satisfaction and confidence in financial advisors.

Those who have experienced the services of a Financial Adviser were more likely to declare trust in financial advisers than a similar non-advised respondent. This is a strong indicator of trust.


The use of an expert, professional and impartial financial adviser to help manage the financial affairs results in having substantially higher investible assets as well as being more financially secure in the event of death, sickness, illness or disability or retirement.


CIRANO – An Economic Analysis of Value of Advice in Canada, Claude Montmarquette

PIBA – The Value of Advice

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Gavin Gilmore trading as Gilmore Insurance & Financial Services is regulated by the Central Bank of Ireland.
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