The Intangible Benefits of Financial Planning

Retirement is something that many of us look forward to, but it can also be a source of stress and uncertainty.

One of the best ways to ease those worries is through careful financial planning.

While the tangible benefits of financial planning – like having better control over your money, paying less taxes, investing smarter and having the ability to leave an inheritance to our loved ones – are obvious, there are also many intangible benefits that can make a big difference in our overall well-being and happiness.

In this blog post, we'll take a look at three of these intangible benefits and explore how they can help us make the most of our retirement years.

Benefit #1: Greater peace of mind

When we have a clear plan for our finances, it can greatly reduce our anxiety and stress.

According to a 2020 study by the American Psychological Association, people who have a well-thought-out financial plan report feeling less stressed and more in control.

This is especially true in retirement, when we may be concerned about how we will sustain an income from various pension and investment pots, or whether we will outlive our savings.

We can feel more secure and at ease when we have a plan in place and know that our financial needs will be met.

Benefit #2: More control over our lives

Financial planning gives us the ability to make choices about how we want to live our lives in retirement.

According to a study by The National Bureau of Economic Research, 2020 individuals who reported having greater control over their finances also reported greater overall well-being.

Without a plan, we may feel stuck in a certain lifestyle or be forced to make drastic changes due to unexpected expenses. With a plan, we have more control over our retirement and can make choices that align with our values and goals.

Benefit #3: Increased sense of purpose

Retirement can be a time of great change and transition, which can be unsettling for many people.

Financial planning can help us to identify and achieve new goals in our post-work lives, which can help us to feel more fulfilled and purposeful.

According to a study by The Journal of Applied Gerontology in 2020, retirees who felt secure about their financial future reported greater overall well-being and a more positive outlook towards ageing.

This is especially true when we are able to use our savings to pursue our passions and interests, whether that be traveling, volunteering, supporting our family or starting a new business.

Final Thoughts

Retirement is an exciting time of life, but it can also be stressful if we're not prepared.

By planning our finances carefully, we can reap many benefits that go beyond just money. We can gain more peace of mind, control over our lives, and a stronger sense of purpose. Financial planning may not provide happiness in and of itself, but it does provide a sense of control, which can lead to a greater sense of well-being.

According to studies, retirees who felt confident about their financial future reported higher overall well-being than those who felt less confident.

You can ensure that you will be able to enjoy all of the benefits, both tangible and intangible, that come with a financially secure retirement by starting to plan for it now.

For a more detailed discussion on this topic, please feel free to contact us. Our team are always available to answer your questions and to help you with any of your financial planning needs. Here’s what we offer: A cup of coffee… and a second opinion.

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