Advisers tap into ’emotional edge’ to deliver | Australian Markets

Financial advisers have delivered worth for shoppers with not simply technical experience however emotional help, in accordance to a new report from Russell Investments.

The 2025 Value of an Adviser Report discovered the emotional advantages of receiving financial advice could outweigh technical experience when it comes to shopper satisfaction.

Of a survey of 700 Australian suggested and unadvised traders, 89 per cent of the suggested shoppers stated feeling assured and educated about their funds is the highest financial benefit of advice, 86 per cent cited feeling more in control of their funds as the highest emotional benefit and 81 per cent indicated they had been “extremely confident” in reaching their financial targets. This is in contrast to solely 28 per cent of unadvised traders feeling the identical confidence.

This 12 months’s report additionally featured a new measure, the Value of an Adviser Index, which ranks Russell Investments’ 5 pre-determined parts that make up its proprietary Value of an Adviser formulation to decide which part is chargeable for essentially the most shopper satisfaction.

The rating was:

• Technical and emotional experience – 118
• Appropriate asset allocation – 113
• Tax-savvy planning – 92
• Behavioural teaching – 91
• Guidance on financial trade-offs – 88

The report additionally reaffirmed the advantages of financial advice throughout each life stage, with 42 per cent of suggested retirees in a position to exit the workforce earlier than the age of 65, in contrast to solely 20 per cent of unadvised retirees – 80 per cent of whom retired over the age of 65.

Over 85 per cent of suggested Australians who responded to the survey stated they’ve a “clear and structured financial plan in place” they usually really feel “more in control of their finances”, whereas 81 per cent stated that they had “peace of mind about their financial future”.

The report additionally indicated some variations of opinion when it got here to advisers ranking their own companies in contrast to their shoppers. Approximately 70 per cent of the advisers surveyed stated the primary financial benefit of their advice helps shoppers navigate durations of market volatility and to “avoid costly mistakes”; solely 28 per cent of shoppers agreed. Similarly, 99 per cent of advisers stated offering reassurance during financial uncertainty was a key benefit of their service; solely 78 per cent of shoppers agreed.

Advisers additionally rated themselves larger than their shoppers when it comes to payment readability; surveyed shoppers rated the significance of clear and digestible charges at 8.2 out of 10 and advisers’ efficiency of this at 7.9, whereas advisers rated themselves at 8.4.

Neil Rogan, Head of Distribution, Australia and New Zealand at Russell Investments, stated advisers can close this trust hole with their shoppers by adopting clearer communication and easy-to-understand approaches of explaining complicated ideas, which will even help to deepen shopper engagement and satisfaction.

“Advisers have always been technical experts, but this research shows their real competitive edge is helping clients feel calm, capable, and in control,” he stated.

“The Index reveals us that in 2025, technical and emotional experience, coupled with acceptable asset allocation are the primary drivers of shopper satisfaction. Advisers who deal with these are best positioned to deliver essentially the most impactful outcomes.

“Advice is delivering measurable worth, each in financial phrases and emotional wellbeing. This is a robust basis for advisers to construct loyalty and referrals.

“We want to equip advisers with practical insights they can apply immediately. Helping clients feel in control of their financial future is not just a nice-to-have; it’s the core of the value proposition.”