Financial planning is becoming advisors' best tool for long-term client loyalty

Financial planning is emerging as more than a value-add for financial advisors – it is becoming the front door through which many advisory relationships now begin, according to new research from Cerulli Associates.

The Boston-based research and consulting firm's latest research found that affluent investors most commonly cite comfort working with a human advisor (28%), the ability to ask specific questions (20%) and a desire for a strong ongoing relationship (19%) as their top reasons for maintaining a formal advisory relationship. Rounding out the top-five list, those well-heeled clients pointed to guidance in understanding a financial plan (13%) and collaborating on that plan (11%).

The client focus on financial planning cuts across all advice channels, according to Cerulli. When asked if having a financial plan is important, 85% of all respondents agreed, with affluent clients served by private banks leading the way at 89%.

The findings suggest that even as digital tools and artificial intelligence reshape the wealth management landscape, the human elements of advice – not portfolio construction alone – remain the primary draw for clients.

Boom times for planning services

The emphasis on planning is already showing up in how advisors run their practices. Cerulli found that 24% of advisors report their clients receive targeted planning aimed at a specific goal, while 48% say clients receive comprehensive, ongoing planning advice. Advisors expect that comprehensive share to climb to 54% by 2027.

"As investors accumulate more assets across a variety of vehicles, they are likely to benefit from a professional who can review each account and create an efficient savings and investment plan to achieve their goals," said Scott Smith, senior director at Cerulli.

"Investors are increasingly looking for guidance to address their immediate financial needs while keeping long-term goals in focus," he added.

Cerulli recommends that advisors use the client intake process to map out a prospective client's full financial picture, then use the planning process itself to pinpoint short- and medium-term objectives alongside longer-term goals such as retirement. That level of detail, the firm says, gives clients confidence that their goals are reachable when the right plan and guidance are in place.

The research lands at a moment when advisors are already adjusting how they price and position planning services. A separate study on financial planning fees by Datos Insights found that the average annual retainer fee charged by advisors who bill separately for planning has surged 52% since 2023, reaching nearly $6,815 annually, underscoring how central planning has become to advisor revenue models, not just client retention.

Read more: AdvicePay data show subscriptions anchoring fee-for-service planning

Short-term goals matter too

While retirement remains the dominant long-term priority for affluent investors, Cerulli's data shows clients also want help with nearer-term needs. Saving for travel or vacation ranks as the most common short-term goal (44%), followed by building a financially secure retirement (35%) and setting up an emergency fund (34%).

That mix of horizons – decades-long retirement planning alongside a client's desire to fund a vacation or pay down debt – means advisors who position financial planning purely as a retirement exercise may be missing part of a bigger pitch. Cerulli's report frames planning as a "front-porch" service: an entry point that can be used to attract prospective clients before converting them into long-term, fee-generating relationships.

That entry point matters increasingly for a generation of clients raised on digital tools. As digital innovation and automation make economic analysis, market updates, and product intelligence increasingly commoditized, advisors who close the experience gap between digital convenience and personal attention are better positioned to retain younger, tech-savvy clients.

Read more: How advisors are winning Gen Z clients — and keeping them

The research arrives as advisors face growing competitive pressure to demonstrate value beyond investment returns. One recent survey by Trust & Will found more than two-thirds of advised clients said they would consider switching to an advisor who offers a broader range of planning services, such as estate planning.

"As more investors seek human guidance in building their financial future, financial planning will serve as both an initial value proposition and long-term value add," Smith concluded.