Financial planning has lately been a major focus among various sections of society and the government amid concerns over higher living costs, inadequate pensions, and monetary security in old age. A new survey by the Financial Planning Standard Board (FPSB) titled “Mapping India’s Financial Path” and released on the occasion of World Financial Planning Day today has revealed several interesting facts about how Indians go about managing their finances.
For example, while some 51 per cent of individuals seek certified financial planners’ (CFPs) help in navigating financial issues, more than 24 per cent of them rarely bothered to check their credentials. Over 37 per cent of them said they are concerned over the CFPs’ certification and only around 24 per cent considered the testimony of the CFPs’ clients while choosing them.
The report said that 52 per cent of CFPs are adequately equipped with knowledge to help their clients in financial matters, but only around 39 per cent checked their credentials. Compared to individuals, the number of corporates seeking a CFP’s help was low at just 6.56 per cent.
People in their middle aged are the ones who believe in consulting a financial planner while handling their finances, young adults prefer to take some advice in order to know where to begin but seniors citizens is the demographic where only a few seek professional help.
As the need for making informed decision regarding finances is surging, the demand of CFPs is also significantly increasing. However, about 83 per cent people are taking professional help for entrepreneurial purposes as opposed to the rest who are employed.
FPSB in collaboration with its global network and regulatory bodies hosted this annual event for the eighth consecutive time this year to spread financial awareness and help people make informed decisions. The FPSB Network represents over 223,000 CFPs internationally.
Why Is Financial Literacy and Planning Critical?
Commenting on the subject on the occasion, FPSB CEO Dante De Gori, said, “We believe everyone deserves the opportunity to achieve financial well-being. Through the World Financial Planning Day, we aim to help individuals discover the importance of financial planning to help build a brighter and more prosperous future for all.” In a press release, he said FPSB and its network had reached out to over 559 million people around the world during this event last year.
Krishan Mishra, CEO of FPSB India, said, “In today’s complex financial environment, the importance of financial planning and of working with a CFP professional to develop a holistic financial plan cannot be overstated.” He said those who work with a financial planning professional are better off and are more satisfied with their financial situation.
Other Findings
The survey finds a growing demand for qualified financial planning professionals in the job market. While 86 per cent of the respondents felt there were more opportunities for entrepreneurship, almost 14 per cent felt jobs in the financial planning markets were flourishing for those adequately skilled to cater to the people’s unique demands.
The report concludes stressing that financial planning is extremely important to make financial decisions. CFPs can positively impact people’s financial journey, by helping them take calculated risks, and ensure predictable outcomes, providing financial security for future.
