Financial advisers have delivered value for clients with not just technical expertise but emotional support, according to a new report from Russell Investments.
“The 2025 Value of an Adviser Report” found the emotional benefits of receiving financial advice may just outweigh technical expertise when it comes to client satisfaction.
Of a survey of 700 Australian advised and unadvised investors, 89% of the advised clients said feeling confident and knowledgeable about their finances is the top financial benefit of advice, 86% cited feeling more in control of their finances as the top emotional benefit and 81% indicated they were “extremely confident” in achieving their financial goals. This is compared to only 28% of unadvised investors feeling the same confidence.
This year’s report also featured a new measure, the Value of an Adviser Index, which ranks Russell Investments’ five pre-determined components that make up its proprietary Value of an Adviser formula to determine which component is responsible for the most client satisfaction.
The ranking was:
- Technical and emotional expertise – 118
- Appropriate asset allocation – 113
- Tax-savvy planning – 92
- Behavioural coaching – 91
- Guidance on financial trade-offs – 88
The report also reaffirmed the benefits of financial advice across every life stage, with 42% of advised retirees able to exit the workforce before the age of 65, compared to only 20% of unadvised retirees – 80% of whom retired over the age of 65.
Over 85% of advised Australians who responded to the survey said they have a “clear and structured financial plan in place” and they feel “more in control of their finances”, while 81% said they had “peace of mind about their financial future”.
The report also indicated some differences of opinion when it came to advisers rating their own services compared to their clients. Approximately 70% of the advisers surveyed said the main financial benefit of their advice is helping clients navigate periods of market volatility and to “avoid costly mistakes”; only 28% of clients agreed. Similarly, 99% of advisers said offering reassurance during economic uncertainty was a key benefit of their service; only 78% of clients agreed, reported Financial Newswire.