More than half (52%) of investors say that the value of financial advice has increased post crisis, but less than half (43%) report actually having a planning discussion with their advisor in the past year. Why the disconnect?
According to new research from MMI and Aon in their Advisory Solutions: Expectations and Experiences series, surprising gaps between client expectations and firm delivery continue to challenge the wealth management industry and inhibit client value.
Other key findings:
- A discrepancy exists between client sentiment and advisor perception regarding the importance of topics covered during financial planning discussions. Clients place greater value than advisors (72% versus 53%) on reviewing projected retirement income versus projected living expenses, estimated retirement living expenses (72% versus 51%), and current expenses/savings and investment goals (70% versus 51%).
- Personal values have continued to increase in importance to clients as part of financial planning discussions, but advisors still underestimate the importance of some values to clients. Human rights (60%), social justice (54%), and global environmental protection (51%) are rated by clients as the most important personal values.
“Navigating the pandemic along with a myriad of other events fueled an unprecedented level of uncertainty – pushing many individuals to seek professional financial advice – some for the first time,” says Craig Pfeiffer, President and CEO of MMI. Peter Keuls, Global Head of Wealth Management at Aon, adds: “It’s important to keep in mind that financial advice is not a one-size-fits-all solution. Addressing the unique needs and motivations of each investor is critical in optimizing the planning process.”
Detailed findings from the 2021 Expectations and Experiences research are being released in a series of four reports over the next few months. The first report, which is now available, looks at Delivering Premium Advice and provides action steps for wealth management firms and advisors seeking to deliver a more impactful service that effectively addresses clients’ post-pandemic needs.
We hope you find this new research valuable. If you have any questions, please contact MMI at (646) 868-8500 or firstname.lastname@example.org.