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Financial Planning: A Keystone for Mental Wellbeing, Canadian Study Reveals

Uncover the compelling evidence on the interconnection between financial planning and mental health. Explore how financial advisors are pivotal in improving their clients' mental wellbeing through strategic financial planning.

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Sakchi Khandelwal
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Financial Planning: A Keystone for Mental Wellbeing, Canadian Study Reveals

Financial Planning: A Keystone for Mental Wellbeing, Canadian Study Reveals

A recent collaboration between the Canadian Mental Health Association and Bridgehouse Asset Managers has unearthed compelling evidence on the interconnection between financial planning and mental health. This groundbreaking study, involving 1,500 Canadian adults with a minimum of $25,000 in investable assets, has revealed that those with a financial plan overwhelmingly report better mental wellbeing. Financial advisors like Aravind Sithamparapillai from Ironwood Wealth Management Group are witnessing the transformative power of financial planning on their clients' mental states.

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Understanding the Impact

According to the study, an astounding 90% of investors who have a financial plan in place describe their mental wellbeing as either excellent, very good, or good. This statistic not only highlights the positive correlation between having a financial strategy and mental health but also emphasizes the critical role financial advisors play. Beyond managing assets, advisors are pivotal in enhancing their clients' quality of life by mitigating financial stress and improving sleep quality through strategic financial planning.

Strategies for Mental Wellbeing

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Experts within the field stress the importance of financial advisors employing methods such as active listening and the SOAP (Subjective, Objective, Assessment, and Plan) method for note-taking to effectively gauge and address their clients' mental health concerns. These approaches enable advisors to identify underlying stressors that may be affecting their clients and devise plans to alleviate these pressures. Implementing such techniques underscores the advisor's role in fostering an environment conducive to not only financial success but also mental and emotional health.

Broader Implications

The study's findings resonate with broader research, such as the TIAA Institute report, which outlines the detrimental effects of financial stress on mental health, including increased absenteeism and challenges in decision-making at work. Both pieces of research advocate for a more holistic approach to financial advice, one that includes addressing the mental wellbeing of clients as a fundamental aspect of financial planning. This paradigm shift towards integrating mental health support into financial advisory services could significantly enhance the overall client experience.

The Canadian study's insights into the profound impact of financial planning on mental health underscore the indispensable role of financial advisors in their clients' lives. Not only do they provide guidance on wealth management, but they also offer crucial support for mental wellbeing, illustrating the multifaceted value of comprehensive financial planning. As society continues to grapple with mental health challenges, the intersection between financial stability and mental health emerges as a critical area for further exploration and action.

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