People with financial advisers feel better off than their unadvised peers, according to an annual report by Financial Advice Association Australia.

The Value of Advice Index found nearly two in three financial adviser clients are highly satisfied with their wealth, versus one in three unadvised consumers.

They also enjoy a higher quality of life, have more financial confidence and experience less financial stress, according to the association.

In contrast, consumers not receiving advice report unmet financial needs, including the ability to live their desired lifestyle (nearly two in five), reducing financial stress (nearly two in five); and a realistic plan for a more comfortable retirement (more than one in three).

“It is well understood that financial wellbeing is connected with overall health and wellbeing,” association chair David Sharpe said.

“The FAAA Value of Advice Consumer Research makes clear the link between getting quality financial advice and having better quality of life and less financial stress.

“The study was undertaken at a time when many people are experiencing cost-of-living pressures, from their supermarket shopping to their mortgage.

“In this environment, it is fantastic to see that those who work with a financial adviser feel more financially secure and able to face current challenges.”

Trust in financial advisers is at a high, with 94% of advised clients confident their advisers will act in their best interests and about 90% saying benefits outweigh the costs.

The report is based on a survey in August and September involving 1193 respondents aged 25 and older with an annual income of more than $90,000 or more than $50,000 in investable assets.