SJP: Learning how to nurture the adviser-client relationship

Long-term relationships are a pillar of support and stability in a person’s life.

Whether that’s friendships, family or romantic partnerships, connections built over time provide a stable foundation for personal growth, support and emotional wellbeing.

It’s the same principle with a financial adviser. Financial advice is about much more than numbers on a page or graphs on a screen. It’s about building deep, meaningful relationships that last a lifetime and, in many cases, span generations.

Having a dedicated professional who knows not only the individual client’s financial goals but also the dreams, ambitions and values that shape those goals, can be life enhancing or even life changing.

The majority (62%) of those in receipt of regulated advice have never switched their adviser

In that vein, we recently conducted research to understand more about clients’ relationships with their adviser, and the results were striking.

The majority (62%) of those in receipt of regulated advice have never switched their adviser. This number increases among older generations, indicating just how many longstanding advice relationships exist.

Those that have never switched say the trust in the relationship, understanding of their financial situation and financial satisfaction are the main reasons why the connection has stayed strong.

This is reflected in the average length of adviser-client relationships. The typical relationship across all age groups with adviser or advice firm lasts around seven years. It rises to over a decade for those aged 55 and over, with nearly a third (31%) of this generation having been with their adviser for 16 years or more.

The typical relationship across all age groups with adviser or advice firm lasts around seven years

So, how do advisers build these very important lasting bonds with clients?

Firstly, it’s about being by a client’s side for their life journey – from first job to retirement and beyond. Helping them to establish a solid financial foundation early on, advising on savings strategies, investment options and protection needs are the early steps.

Then, as life moves on, the focus shifts to more complex planning around property purchases, education funding, career transitions and into retirement. You’re there for it all, you see the ups and downs, and this provides reassurance.

Maintaining a strong adviser-client relationship often extends far beyond a single individual. By considering the entire family and all their needs, it’s common for advisers to become integral to family decision-making, providing continuity and guidance through different life stages for multiple generations.

Clearly, to do all this, an adviser building their expertise must go beyond the nuts and bolts of achieving proficiency in qualifications or improving interpersonal skills.

Those that have never switched adviser say trust, understanding of their financial situation and satisfaction are the main reasons why

Of course, advisers must have strong technical aptitude, but developing the relationships necessary to build those deep connections is essential too. This is why an adviser should be trained in areas like active listening, empathy and how to navigate sensitive conversations with clients.

This prepares them to not just give advice but to understand clients on a deeper level.

Similarly, it’s important for advisers to look beyond immediate financial objectives and consider the wider implications of their advice on their client’s values, family wellbeing and long-term goals. For example, integrating estate planning, wealth transfer strategies and intergenerational planning into their advice will ensure they can support clients throughout life’s transitions.

Finally, advisers must learn how to adapt their advice as clients’ needs change. Making use of role play, case studies and mentorship from experienced advisers can equip younger advisers with insights into the complexities of long-term client management.

It’s about being by a client’s side for their life journey – from first job to retirement and beyond

Deploying these skills with clients can make a huge difference. That same research found those who receive ongoing advice benefit in a range of ways, with 92% stating they have benefited mentally and emotionally, and 75% saying it has improved their quality of life.

The main takeaway is that the most important thing is being there and supporting your clients – in the good times and also in the more difficult times, such as the loss of a loved one or a significant life change.

By investing in your relationships, both you and your clients benefit from a partnership that not only meets financial objectives but also fosters a sense of security, trust and shared purpose.

Andy Payne is head of St James’s Place Financial Adviser Academy