Helping clients thrive: Why wellbeing is essential to financial advice

However, societal priorities are evolving, with wellbeing – encompassing fulfilment, peace of mind, goal attainment and alignment with personal values – emerging as the core of what it means to truly thrive. Clients today are increasingly seeking not just financial security but lives that are enriched with purpose, satisfaction and the achievement of meaningful goals.

This evolution redefines the role of financial advisers, placing goal attainment at the heart of wellbeing. Behavioural finance thought leaders like Professor Meir Statman emphasise that “wealth is merely a way station to wellbeing”, urging advisers to go beyond the numbers and focus on helping clients achieve their personal goals as a pathway to improving their overall quality of life.

By integrating wellbeing into their goal-based value proposition, advisers can differentiate themselves, foster deeper connections, reduce client stress and guide individuals towards greater happiness, confidence and the fulfilment of their most meaningful aspirations.

Meet Sarah

Imagine a client named Sarah. Despite having a well-funded investment portfolio and a steady income, she often feels anxious about her financial future. She’s overwhelmed by daily expenses, uncertain about her long-term goals and constantly worries about unexpected emergencies. Her stress isn’t about the numbers on her balance sheet, it’s about the lack of clarity and confidence in her overall financial life.

By adding wellbeing to the value proposition, advisers can help clients like Sarah achieve more than just financial success. They can guide them towards a sense of control and purpose in their financial lives. For both clients and advisers, the rewards of focusing on financial wellbeing are profound and far-reaching.

Financial wellbeing v financial wellness: Understanding the distinction

Though often used interchangeably, financial wellbeing and financial wellness have distinct implications. “Financial wellness” typically refers to physical and immediate financial health, focusing on aspects such as budgeting and emergency savings. It often implies a static or quantifiable state of health. In contrast, said financial psychologists Brad Klontz and Ted Klontz, “financial wellbeing” is broader and more holistic, encompassing financial stability and its impact on personal peace, happiness and mental resilience.

Financial wellbeing reflects an ongoing journey of managing finances thoughtfully to support a life aligned with personal values and aspirations. Integrating this concept into the adviser-client relationship addresses the full spectrum of client needs, helping them achieve a balanced, secure and meaningful financial life.

Key benefits for advisers

1. Enhanced client engagement and retention

Focusing on financial wellbeing fosters deeper client engagement by addressing both immediate and long-term needs. By guiding clients on budgeting, saving, managing debt and planning for life transitions, advisers become essential partners in their financial lives. Research conducted by Klontz and Klontz revealed that when clients experience consistent support in these areas, they tend to be more loyal, improving client retention and increasing referrals.

2. A differentiated value proposition

With the rise of robo-advisers and automated tools, advisers are challenged to demonstrate value beyond portfolio management. Fintech and financial wellness researcher Chris Heye said a focus on financial wellbeing creates a differentiated service that offers support beyond returns, addressing the broader impact of financial health on the lives of clients. This approach positions advisers competitively in an evolving market while appealing to a diverse client base seeking services that combine financial stability with life fulfilment.

3. Improved client outcomes

Advisers who guide clients towards financial wellbeing promote sustainable, proactive behaviours like regular savings, debt management and mindful spending. According to the Klontzs, clients who adopt these habits experience less financial strain, build resilience and are more likely to reach their goals. Advisers who support these practices empower clients to enjoy lasting peace of mind and financial freedom.

4. Future-proofing the advice business

As the needs of clients evolve, advisers who offer financial wellbeing services are better positioned to adapt. Financial wellbeing addresses changing circumstances, from cognitive support in later life to guidance during major life transitions. This adaptable model, said authors Julie Fortin, Marlis Jansen and Brad Klontz, fosters enduring client relationships, helping advisers build a resilient business that remains relevant over time.

Core elements of a financial wellbeing service proposition

1. Short-term financial management

Helping clients achieve their short-term goals – establish a budget, manage expenses and set up an emergency fund – provides a baseline for financial stability. By prioritising short-term financial security, advisers can help clients alleviate stress and set the stage for ongoing wellbeing.

2. Long-term financial planning

Mapping out long-term goals, such as retirement, home ownership and debt reduction, is essential for financial wellbeing. Advisers help clients balance immediate needs with future aspirations, creating a strategic roadmap for sustainable financial health.

3. Behavioural support and emotional resilience

Financial wellbeing includes understanding and managing the emotional aspects of financial decisions. Advisers can help clients identify and address financial anxieties, align decisions with personal values and build disciplined habits. Drawing on behavioural finance and financial psychology, advisers can foster habits that lead to lasting wellbeing.

4. Health and cognitive planning

As clients age, their financial needs and cognitive capabilities change. Advisers can guide clients in planning for healthcare costs, cognitive decline and other ageing-related factors. This ensures financial security across life stages while reducing risks associated with cognitive decline and health costs.

Technology and wellbeing

Technology plays a vital role in enhancing a wellbeing-focused value proposition by equipping advisers with tools that support personalisation, transparency and engagement. Financial planning software, client portals and behavioural finance apps enable real-time tracking of goals, behavioural insights and automated check-ins, empowering clients to take control of their financial journey.

Advisers should prioritise technology that is user-friendly, integrates holistic planning features and offers financial wellness assessments and educational resources. Seamless communication capabilities, such as secure messaging and video conferencing, also help foster deeper client connections. By selecting adaptable solutions with robust security and compliance features, advisers can build trust while delivering meaningful, personalised support that reduces client stress and promotes long-term financial wellbeing.

Why now is the time for financial wellbeing

Demand for wellbeing-centred financial advice is growing as clients navigate economic uncertainty, personal transitions and a shift in values. Studies reveal that clients increasingly expect advisers to prioritise holistic support, addressing both financial and emotional needs.

For clients, the benefits of financial wellbeing are transformative. They gain stability, reduced stress and a roadmap to achieve meaningful life goals. For advisers, this approach enhances client satisfaction, deepens engagement and ensures a resilient practice that adapts to the evolving needs of clients.

As the financial advice industry transforms, advisers who integrate financial wellbeing with their goals-based proposition, can lead the way by delivering services that enrich the lives of clients while securing long-term success. By helping clients thrive, advisers can make a lasting impact on both financial security and personal fulfilment.

Implementing financial wellbeing services in practice

Advisers can integrate financial wellbeing into their businesses by following these steps:

1. Develop customised financial wellbeing plans: Tailored plans addressing budgeting, debt management and goal setting help clients feel supported and set them on a path towards stability.
2. Educate clients on financial literacy: Offering workshops or resources equips clients to manage their finances confidently.
3. Conduct financial wellbeing assessments: Tools for measuring wellbeing allow advisers to track progress towards their goals and adjust strategies, ensuring alignment with evolving client circumstances.
4. Regular progress check-ins: Lifelong financial wellbeing requires consistent engagement to reassess goals and challenges.
5. Emphasise emotional and behavioural support: Using techniques like mindfulness fosters trust and meaningful client experiences.

Johann Maree is head of research and training, AstuteWheel.