Royal London has produced a research report which indicates clients are increasingly of the view they get value for money from their advisers.
The Meaning of Value Report 2024 shows an increase in the positive sentiment clients have on their experience with their adviser over what was found in 2023.
For the second year running, a majority of consumers who pay for advice said they received ‘good’ or ‘excellent’ value for money from their adviser.
This sentiment was a fifth higher than in 2023, moving from 54% to 66%.
The 2024 report also found that overall satisfaction is positive amongst advised customers, with 74% saying their satisfaction level ranges from ‘good’ to ‘very satisfied’.
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It was not all great feedback though, with some findings suggesting advisers have “a tricky balance to strike” between demonstrating tangible and intangible benefits, Royal London noted.
Advice clients want tangible measures, such as investment returns as well as intangible things such as peace of mind and a sense of security.
The research shows there is some misalignment between what Royal London’s adviser panel judged as being important to their clients, and what the research found.
The data showed that 45% of consumers who have an adviser said investment performance is the most important factor for them when assessing overall value for money, but only about a quarter (24%) of advisers believed it has a big impact.
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Jamie Jenkins, director of policy and communications 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.
“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,” he continued. “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.
“Overall, we can start to paint a picture of how the perceptions of advice change, with many people starting their journey simply looking to address a particular financial requirement but then realising the much greater benefits of a holistic, goals-based approach to their later life finances.”
