Consumers lack confidence in achieving their financial goals. Just 22 percent believe strongly that they will achieve their financial goals. Only 17 percent believe strongly in their financial know-how, and just 19 percent feel very successful in sticking to their financial strategies.
Being debt-free is most important to consumers globally. Being free of major financial debt (55 percent) and being free of common consumer debt (54 percent) are most important to consumers, with being prepared for an unexpected financial emergency (52 percent), home ownership (52 percent) and building up savings (51 percent) next on the list of very important priorities.
Consumers are interested in financial planning services to help them get on track financially. Survey respondents view retirement planning as the most helpful financial planning service (50 percent), followed by investment planning (38 percent) and then budgeting, cash flow and debt management together at 36 percent.
However, most rely on friends and family – not professional financial planners – for information on financial matters and planning. More than four in 10 (44 percent) consumers rely on friends and family, while another 41 percent rely on websites for financial information. Fewer (31 percent) turn to a financial planner.
Knowing whom to trust is the biggest barrier to working with a financial professional. Among those surveyed, 68 percent rate "trustworthiness" as very important when choosing a financial professional – higher than any other consideration. Yet, two in three consumers (66 percent) agree either strongly or somewhat that they do not know whom to trust when it comes to getting financial planning advice.
Those who work with a financial professional generally feel better prepared to achieve their financial goals. While those who work with a financial adviser express stronger confidence in achieving their financial and life goals (31 percent strongly agree versus 15 percent among those who do not work with a professional), those working with a CERTIFIED FINANCIAL PLANNER professional are even more confident (43 percent).
Consumers with a plan are more confident. And those who have a written, comprehensive plan are nearly three times more likely to feel confident they will achieve their life goals (38 percent strongly agree versus 14 percent among those who lack such a plan).
helping to create actionable plans (51 percent versus 35 percent).
In addition to questions about their own finances, FPSB's global study also sought consumer perspectives on regulation of the financial planning profession. While many respondents (41 percent) were unsure whether their governments regulate financial planning, 79 percent felt it was either very important or somewhat important that financial planning be regulated. In most territories around the world, financial planning is not regulated per se.
FPSB's vision is to establish financial planning as a distinct profession. Together with its member organizations in 26 territories, FPSB will use its research findings to develop a global consumer awareness campaign about the value of financial planning and of working with a CERTIFIED FINANCIAL PLANNER professional. FPSB member organizations in the following territories participated in the global research: Australia, Austria, Brazil, Canada, China, France, Germany, Hong Kong, Indonesia, Ireland, Malaysia, the Netherlands, New Zealand, the Republic of Korea, Singapore, South Africa, Switzerland, the United Kingdom and the United States.
FPSB manages, develops and operates certification, education and related programs for financial planning organizations 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 CFP Logo mark – which it owns in markets outside the United States. FPSB has a nonprofit member organization in the following 26 territories: Australia, Austria, Brazil, Canada, Chinese Taipei, Colombia, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Japan, Malaysia, New Zealand, the Netherlands, the People's Republic of China, the Republic of Korea, Singapore, South Africa, Switzerland, Thailand, Turkey, the United Kingdom and the United States. At the end of 2014, there were 157,586 CFP professionals worldwide. For more, visit fpsb.org.