Counting the worth of words to the wise

Natalie Holt | Supplied

“Beauty is in the eye of the beholder”, so the saying goes. Different people will have different views on who or what they consider to be beautiful.

The same is true for value. Understanding whether a product or service delivers value will depend on a number of factors, not least who is judging the value on offer.

It turns out that understanding what value means when it comes to your finances is also quite subjective. As part of research carried out for pension and investment company Royal London, and with the help of research firm Opinium, the lang cat explored the meaning of value from a few different angles.

Firstly, what does value mean to you? When we asked this question, many people defined it as either getting value for money, what a product or service is worth, or what something costs.

Secondly, we were interested in getting views on what people are looking for when getting financial advice.

There were a few different reasons why people wanted help with their finances, including meeting financial goals, someone to help manage their affairs, or support with planning for retirement or for the future.

For others, financial advice was about finding someone to trust, getting help with difficult financial decisions and knowing that someone understood their individual situation.

Numbers versus peace of mind

The research shows the value of financial advice comes in many forms.

For some, it’s about the benefits in pure pounds and pence. For example, working with a finance professional with a view to cutting down your tax bill. Or making sure your money is working as hard as possible and generating good returns.

For others, the value of working with a financial adviser is about what it can do for you on a more personal level.

Those who do this for a living say the same thing. Financial advisers can help grow your wealth, but they feel they add the most value by giving peace of mind. That feeling that your money is being well looked after, by people who know their stuff.

Good financial advisers will also take the time to understand why the money you’re setting aside is important, and what you want to use it for.

The research also shows that people who have had financial advice say it is good or excellent value for money, and that they are happy or very happy with the service they’ve received.

Interestingly, what people value about financial advice seems to change over time.

What starts as a focus on the numbers becomes a different conversation later on. There’s more emphasis on whether you are on track to meet your financial goals, and getting reassurance from someone you trust.

Former politician Michael Gove is famously quoted as saying “people in this country have had enough of experts.” Yet with money and finances, the research suggests experts are proving their worth again and again, in ways that are both measurable and priceless. That seems like good value however you define it.

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