Advisers tap into ’emotional edge’ to deliver value for clients

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 per cent of the advised clients said feeling confident and knowledgeable about their finances is the top financial benefit of advice, 86 per cent cited feeling more in control of their finances as the top emotional benefit and 81 per cent indicated they were “extremely confident” in achieving their financial goals. This is compared to only 28 per cent 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 per cent of advised retirees able to exit the workforce before the age of 65, compared to only 20 per cent of unadvised retirees – 80 per cent of whom retired over the age of 65.

Over 85 per cent 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 per cent 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 per cent 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 per cent of clients agreed. Similarly, 99 per cent of advisers said offering reassurance during economic uncertainty was a key benefit of their service; only 78 per cent of clients agreed.

Advisers also rated themselves higher than their clients when it comes to fee clarity; surveyed clients rated the importance of transparent and digestible fees at 8.2 out of 10 and advisers’ performance of this at 7.9, while advisers rated themselves at 8.4.

Neil Rogan, Head of Distribution, Australia and New Zealand at Russell Investments, said advisers can close this trust gap with their clients by adopting clearer communication and easy-to-understand approaches of explaining complex concepts, which will also help to deepen client 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 said.

“The Index shows us that in 2025, technical and emotional expertise, coupled with appropriate asset allocation are the main drivers of client satisfaction. Advisers who focus on these are best placed to deliver the most impactful outcomes.

“Advice is delivering measurable value, both in financial terms and emotional wellbeing. This is a strong foundation for advisers to build 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.”