Clients willing to pay higher advice fees when value is clear

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

The survey found that 91% of financial advice clients surveyed rate the advice they receive as ‘good’ or ‘excellent’ value.

Client satisfaction is highest among those who say they fully understand their fee structure – with 97% of this cohort rating the value for money as ‘good’ or ‘excellent’, and 98% saying they trust their adviser.

Conversely, of those paying clients who say they don’t completely understand the fee breakdown, only half (50%) believe they are receiving ‘good’ or ‘excellent’ value for money, with just 79% having trust in their adviser. 

The total fee picture – including AI

Almost half (45%) of clients surveyed said their advice fees increased in the last 12 months – with the average ongoing advice fee charged by advisers in 2026 at 83 bps, up from 77 bps the previous year. Almost one in five (17%) of advisers polled for the report say that they plan to increase their initial fees in the next 12 months.

While advisers see AI as enhancing value, improving quality, consistency and scalability of their firm, they do not expect such tools to result in a reduction in the advice fee. More than half (51%) say AI will allow them to provide more value for the same advice fees.

The research also found that clients have clear and rising minimum expectations as advice fees increase – with access to a dedicated adviser, ongoing access and human-led interim/annual reviews considered essential features of an acceptable higher-priced proposition rather than a differentiator.

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

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