Financial advisers are delivering greater value to their clients who are more satisfied as a result, according to a new report.

Two thirds (66%) of consumers who pay for advice say they receive ‘good’ or ‘excellent’ value for money from their adviser, an increase from 54% in 2023, according to Royal London’s new 'Meaning of Value' Report.

The study says that overall satisfaction is positive among advised customers, with 74% suggesting their satisfaction level ranges from good to very satisfied.

Consumers said they valued a combination of tangible measures (such as investment returns and making money) alongside intangible factors such as peace of mind and a sense of security.

For investment performance the research showed some misalignment between what advisers judged as being important and what consumers said.

The data revealed that 45% of consumers who have an adviser say investment performance is the most important factor for them when assessing overall value for money, but only around a quarter (24%) of advisers believed it had a big impact.

Both the adviser and consumer responses identified the same top four aspects that were most important when selecting a financial service provider. Consumers want good service, from a provider they can trust, with good investment returns all at a competitive price.

Jamie Jenkins, director of policy and comms at Royal London, said the report showed signs of improvement in how the advice sector was providing value.

He said: “Inevitably, there are still some persistent concerns among advisers as to how best to measure value, and to demonstrate this in a way that satisfies the requirements of the regulator.

“However, it appears that many advice firms have been reassessing their client proposition. This could be driven by a number of factors including the introduction of the Consumer Duty or the regulator’s review of ongoing advice services, but it’s clear that something is working, as there is a significant uptick in client satisfaction.”

• Opinium surveyed 2,000 adults on behalf of Royal London between 18 and 23 September. The adviser research was conducted in September 2024 by the Lang Cat consultancy with 170 respondents.