The overwhelming majority of financial planning clients (over 80%) have high levels of trust in, and satisfaction with, their financial planner.
That is one of the key findings of a study, titled ‘Funding our future: Perceptions of the value of financial advice’, led by a team of researchers from the University of Adelaide, University of Technology Sydney and University of Western Australia. The research was supported by a grant from the Australian Research Council in partnership with the Financial Services Council (FSC).
The research findings reinforce the wide ranging benefits that financial planning offers clients.
Key findings
• An overwhelming majority of clients (84%) reported high levels of trust in their financial planner and 80% said they are satisfied with their adviser.
• Clients see value in having a financial planner. Close to 70% of respondents agreed that paying fees for advice is worth it.
• 80% of clients would recommend their financial planner.
• Financial planners adopt different styles in working with their clients (identified as Mentor, Partner, Delegate, Coach and Validator) and 80% of clients are happy with the service style used by their planner.
• Financial planning clients reported higher satisfaction in making financial decisions, higher satisfaction with the financial aspects of life, and peace of mind than non- clients.
• In contrast to non-clients who see cost as a barrier to obtaining advice, it is interesting to note that the majority of financial planning clients think paying fees for advice is worth it.
Why don’t non-clients seek advice?
The research identified reasons that non-clients do not seek advice include the perception they do not need a planner, a lack of perceived value and that advice is too costly. However, the research found that sharing client experiences about why they value the advice may help non-clients better understand the benefits.
Commenting on the research, FSC chief executive Sally Loane said: “To encourage more Australians to seek financial planning advice, we need to gain a better understanding of the value experience people get when engaging a financial planner. The research findings showing that the overwhelming majority of clients are satisfied with their financial planner goes to show there is fantastic work being done by the industry on a daily basis that goes largely unreported.”
