Clients prepared to pay higher advice fees when value is clear

Clients are willing to pay higher financial advice fees if they clearly understand what they are paying for and the value they receive, according to a report from NextWealth.

Its Fee Benchmarking 2026 report looked at how advice fees were evolving and how clients judge value, and found that 91 per cent of advised clients rated the advice they received as ‘good’ or ‘excellent’.

Those who had a full understanding of their fee structure were most likely to be satisfied, with 97 per cent of this cohort rating the value for money they received as good or excellent, and 98 per cent trusting their adviser.

Clients who said they did not completely understand their fee structure were must less likely to be satisfied, with only 50 per cent believing they were receiving good or excellent value for money and just 79 per cent trusting their adviser.

“When advisers bridge the understanding gap, clients move from questioning the cost to valuing the outcome,” commented NextWealth consulting director, Emma Napier.

“This is good news for our industry because it means clients are happy to pay for advice – and accept increases – if (and it’s a big if) they completely understand what they are paying for.

“Our Fee Benchmarking report from last year found that those with a stronger understanding of financial matters are also more aware of the risks and complexities involved and as a result, are more likely to appreciate the value of professional advice in navigating these challenges."

Nearly half (45 per cent) of advised clients had seen their advice fees increased in the past 12 months.

The average ongoing advice fee charged by advisers was 85 bps in 2026, up from 77 bps in 2025.

Around one in six (17 per cent) responding advisers said they planned to increase their initial fees over the next 12 months.

Although advisers expected artificial intelligence (AI) to improve value, quality, consistency, and scalability in their firm, they did not plan to reduce their advice fees as a result.

More than half (51 per cent) said AI would enable them to provide more value for the same advice fees.

“The industry often fears that any increase in cost will alienate clients, but the data tells a different story,” Napier said.

“Price is rarely the primary sticking point; it is a lack of clarity that erodes trust.

“If you are a firm considering raising your fees, the 'human-led' experience and ongoing support aren’t just nice-to-haves, but the minimum expectations from a client.”

---