New research from Royal London shows new insights into how advisers and consumers perceive value. In its third year, the report reveals that, more than ever, people are seeking not only help in meeting their financial goals but also peace of mind and expert guidance for later life planning.
The research examines consumer value judgements across a wide range of financial services products and incorporates financial adviser perspectives to understand both consumer and adviser views on value for money.
Key findings indicate that when working with an adviser, consumers highly value support in achieving their financial objectives, reassurance, and assistance in developing a robust financial plan. When it comes to choosing financial services products, the top priorities are quality of service, trustworthiness, and competitive pricing.
The report also highlights a continued rise in perceived value of financial advice, with 68% of consumers who pay for advice rating it as good or excellent value for money, an increase from 53% three years ago. This trend underlines the growing appreciation of professional financial advice in an increasingly complex economic environment.
Financial advisers play a crucial role in helping clients cut through market noise, providing clear advice and reassurance during periods of uncertainty and helping them stay focused on their long-term goals. By offering steady, informed advice, they help clients prevent short-term speculation de-railing well-laid financial plans, or in the words of one adviser ‘saving clients from themselves’.
Additionally, the findings reveal that 97% of advisers have had clients reach out to them regarding recent Budget speculation, demonstrating the ongoing need for clear and timely advice in response to an ever-changing financial landscape.
Is AI an opportunity or a threat?
There is a significant shift in consumer behaviour and adviser perspectives with emerging trends underscoring the growing role of artificial intelligence (AI) in managing personal finances.
The findings reveal a notable trend among higher earners, with over half (55%) of those with incomes above £60,000 now using AI services in some form to help manage their finances. This growing adoption of technology highlights a significant shift towards innovative digital solutions, as individuals seek smarter, more efficient ways to conduct research and plan for the future.
As AI becomes increasingly integrated into the financial landscape, both consumers and advisers are recognising its potential to enhance decision-making and deliver tailored financial solutions. Trust, value, and service remain at the heart of what consumers are looking for, but technology is playing an ever-greater role in helping them with their financial planning journey.
Jamie Jenkins, director of policy at Royal London, said: “It’s increasingly clear from this research series that people have firm views on what they value in the context of their financial planning, and that advisers remain front and centre of this equation.
“The speculation ahead of this year’s Budget has given rise to an enormous amount of uncertainty, and while most would agree that’s unhelpful, it has only added to people’s positive view of the value they receive from taking advice.
“Undoubtedly, the unstoppable rise of artificial intelligence is changing consumer behaviour, but it is also being adopted by advisers and becoming a more integral part of the overall experience. Those advice firms that embrace its potential will likely see much greater benefit than those that view it as a threat.”
Mike Barrett, consulting director at lang cat, added: “Over the three years we’ve been conducting this research, consumer views as to what they value have remained relatively static. What really comes to the fore is that consumers frame value less as a transactional concept and more as relationship-based, involving honesty, reliability and fair returns.
“The research among advisers shows they are increasingly offering services structured around these needs, with more behavioural and intangible benefits on offer. This is exactly what consumers are saying they want from their adviser and, alongside the increase in professionalism introduced as part of Consumer Duty, helps explain the increasing customer value ratings.”
