The annual FAAA Value of Advice Index has found that not only are Australians who have a financial adviser more confident in their financial outlook and perceived quality of life, but this has remained unchanged in the face of continued cost-of-living pressures and geopolitical concerns.
In comparison to the 2024 Value of Advice Index, the 2025 research found the four key areas of responses from advised clients – quality of life, financial confidence, financial satisfaction and experience with their adviser – have all remained steady. Experience with their adviser rated slightly more positively this year.
Importantly, 96 per cent of those interviewed felt that having an adviser has helped them be confident in their financial strategy during periods of market volatility, with 81 per cent feeling that their adviser’s value increases during this time.
The Index also found 88 per cent of advised Australians are satisfied they have enough money to last through their retirement, compared to 62 per cent of unadvised Australians.
FAAA CEO Sarah Abood says the Value of Advice Index shows Australians continue to trust financial advisers to help them meet financial goals.
“Good financial advice isn’t just about the numbers. It’s about giving people confidence, support and a sense of control even when times are tough.”
The top three ways Australians say financial advisers help are:
- A reduction in financial stress and worry (nearly 2 in 3)
- Providing a realistic plan for a comfortable retirement (nearly 2 in 3)
- Help to get the most out of a current financial situation (nearly 3 in 5)
Digital advice not the complete solution
The research found it was clear that very few Australians are interested in purely digital advice models with most still requiring involvement of human advisers.
Close to 3 in 5 Baby Boomers prefer human-led advice only, which only decreases to 1 in 2 among Gen Y.
A total of 4 in 5 Baby Boomers believe that personalised guidance can only be provided by humans as opposed to digital-only advice, compared to fewer than 3 in 5 Gen Ys and Gen Xs.
Similarly, Baby Boomers are also more likely to believe experience and judgement, tailored risk assessments, and motivation to follow through can only be provided by human financial advisers compared to the younger generations.
Despite Gen Y being more open to AI financial advice services than Baby Boomers:
- The majority still prefer human interaction in their advice solutions
- Only 1 in 10 Gen Y would be comfortable with a completely digital-only advice solution compared to almost no Baby Boomers
- However, Gen Y are significantly more likely to feel comfortable with AI performing administrative tasks of financial planning compared to Baby Boomers
Other highlights from the report include:
96% of clients say financial advice has provided them more value than it costs.
94% say their financial adviser has helped provide greater spending confidence to enjoy their money.
93% of clients report their financial adviser has made them tangibly better off.
92% of clients of financial advisers value the investment education they have received from their adviser.
View the full 2025 FAAA Value of Advice Index and Report here.
