The perceived value of financial advice is rising among clients amid continued speculation around the upcoming Budget and market uncertainty, analysis from Royal London has shown.

The research, in collaboration with The Lang Cat, found that 68 per cent of clients saw advice as providing good or excellent value for money, up from 53 per cent three years ago.

Royal London said that this trend underlined the growing appreciation of professional financial advice in an increasingly complex economic environment.

The report indicated that, when working with an adviser, clients valued support in achieving their financial objectives, reassurance, and assistance in developing a robust financial plan.

When selecting financial services products, clients’ top priorities were quality of service, trustworthiness, and competitive pricing.

Financial advisers were also found to play a key role in helping clients cut through market noise by providing clear advice and reassurance during periods of uncertainty and helping them focus on long-term goals.

The research revealed that 97 per cent of advisers have had clients get in contact with them regarding Budget speculation.

It also found a shift in consumer behaviour and adviser perspectives, with emerging trends highlighting the growing role of artificial intelligence (AI) in managing personal finances.

More than half (55 per cent) of clients with earnings above £60,000 a year are now using AI services to help manage their finances, underscoring a shift towards innovative digital solutions as people seek more efficient ways to conduct research and plan for the future.

The report noted that while trust, value and service remained at the heart of what clients are looking for, technology was playing an ever-increasing role in supported them with financial planning.

“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,” commented Royal London director of policy, Jamie Jenkins.

“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.”

The Lang Cat consulting director, Mike Barrett, 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.”

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