Research from Royal London has revealed that, for the second consecutive year, consumers who pay for financial advice believe they receive ‘good’ or ‘excellent’ value for money from their advisers.
This sentiment increased from 54% in 2023 to 66% in the latest Meaning of Value Report.
The 2024 report shows overall satisfaction among advised customers is positive, with 74% indicating their satisfaction levels range from good to very satisfied.
However, advisers faced challenges in balancing tangible benefits, such as investment returns, with intangible ones like peace of mind.
The research indicated that 45% of consumers with an adviser considered investment performance the most crucial factor for assessing value, while only 24% of advisers believed it significantly impacted clients.
In examining the most important factors for choosing a financial service provider, both consumers and advisers identified good service, trustworthiness, good investment returns, and competitive pricing as key considerations.
Jamie Jenkins, director of policy and comms at Royal London, said: “Now we’re into the second year of our Meaning of Value analysis, the key trends of how value is perceived are becoming more distinct and we can see some early signs of improvement in certain areas.
“It’s encouraging that we and the wider sector are looking at value in a new light and continue to make strides in the right direction.”
Jenkins added: “Inevitably, there are still some persistent concerns among advisers as to how best to measure value, and to demonstrate this in a way that satisfies the requirements of the regulator.
“However, it appears that many advice firms have been reassessing their client proposition.
“This could be driven by a number of factors including the introduction of the Consumer Duty or the regulator’s review of ongoing advice services, but it’s clear that something is working, as there is a significant uptick in client satisfaction.”
Mike Barrett, consulting director at the Lang Cat, said: “Our annual research into The Advice Gap has consistently highlighted somewhat of a paradox, whereby those who pay for advice are more than happy it represents good value, yet those who are not believe it won’t be.
“Our work with Royal London highlights this first point. The advice profession is consistently delivering good value to their clients, and those who are lucky enough to benefit from advice are almost always satisfied with the outcomes they are receiving.”
