A recent study by the Toronto-based Financial Planning Standards Council (FPSC) offers advisors and their clients a broad look at the benefits of comprehensive financial planning.

The study, called the Value of Financial Planning, shows the tangible benefits of comprehensive planning for clients, such as being more likely to achieve their financial goals, says Tamara Smith, vice president, marketing and consumer affairs, FPSC, as well as “priceless” emotional advantages, like having peace of mind about their finances.

According to the survey, 81% of Canadians with a comprehensive plan feel that they are on track with their financial affairs compared to 44% of people who do no planning.

Other details from the study include:

  • 60% with comprehensive financial plans said they felt more confident they could deal with unexpected emergencies compared to only 28% of those who do no financial planning;
  • 65% with financial plans said they felt more prepared to deal with tough economic times vs. only 36% of those without financial plans; and
  • 64% of those with comprehensive financial plans report to having peace of mind vs. only 39% who do no planning.

Smith says three key points advisors should note from the study include: a full-comprehensive plan is significantly better then one done in a piecemeal or incomplete fashion; Canadians engaged in comprehensive financial planning are better off financially than those who do not; and certified financial planners tend to offer their clients more in terms of products and services which in turn develops client loyalty and leads to boost in referrals.

More highlights from the value study will be revealed at the Financial Planning Week Symposium in Toronto on Tuesday. This year’s symposium, says Smith, will focus on the challenges and opportunities to engage Canadians in the financial planning process.

The survey is the third in a five-year study on financial planning in Canada. This year roughly 8,000 Canadians (outside of Quebec) were surveyed.