Financial Planning in 2025: What Clients Really Want from Advisors

Financial Planning: More Than Just Selling Products

Financial planning is a relatively new discipline. Unfortunately, many people perceive financial planners as pushy salespeople. This perception has been reinforced by the practices of some planners who prioritize aggressive sales tactics over genuine advice.

However, as Singaporeans have accumulated more wealth, there has been a growing interest in personal financial planning. This shift has not only reshaped the industry but also prompted planners to adapt their approach to better serve clients.

From Product Sales to Real Advice

In the earlier years, financial planning was often product-centric. Planners focused on aggressively selling financial products, emphasizing features and benefits, and retrofitting them to clients' needs. Sales techniques were at the forefront, with little consideration for personalized advice.

As consumers became more educated and aware of the science behind financial planning, the industry transitioned toward a more advisory-driven approach. This led to the rise of advisory-based financial planning, where planners began incorporating financial principles and rules of thumb, such as:

• How much to save each month?

• Recommended coverage for life and critical illness insurance.

• Basic investment allocation strategies.

The Rise of Digital Tools: Are Robo-Advisors the Future?

Today, the industry is evolving once again. With advancements in technology, digital tools, self-service platforms, and robo-advisors are now widely available. These innovations raise important questions: Are consumers truly better off with these tools, or do human advisors still play a critical role?

While financial planning often appears to be a science—with goals and solutions derived from formulas—it is also deeply influenced by human emotions. Effective planning must consider an individual’s personality and emotional makeup, rather than following a one-size-fits-all approach.

Robo-advisors, which offer lower fees for investment management, bring efficiency and accessibility to the table. Yet, human advisors offer irreplaceable value, including emotional support and strategic collaboration. 

Why Emotions Matter in Financial Planning

Take debt management as an example, Imagine you have 2 loans:

• $100,000 at 5% interest.

• $10,000 at 3% interest.

The logical approach might be to clear the higher-interest $100,000 loan first. However, for some individuals, paying off the smaller $10,000 loan first could provide a quicker sense of accomplishment and a psychological boost, encouraging them to maintain good financial habits. A good financial planner understands these psychological factors and helps clients create strategies that are both financially sound and emotionally sustainable.

The Human Touch in Financial Planning

Consider what happened during the market downturns of 2022, triggered by the Russia-Ukraine conflict and hyperinflation, many investors saw significant declines in their portfolio values. While some panicked and liquidated their investments, others who stayed the course benefited from the market recovery in 2023 and 2024. A human advisor can provide the guidance and reassurance needed to avoid emotionally driven decisions and remain focused on long-term goals.

What Do Clients Really Want?

At the end of the day, clients are looking for more than just investment tips or insurance plans. They want:

• A holistic financial strategy that integrates investments, mortgages, and estate planning.

• A collaborative approach, where their unique needs and emotions are considered.

• A balance between technology and human insight—leveraging digital tools without losing the personal connection.

Financial planning isn’t just about selling or even just numbers—it’s about understanding people. While technology can enhance efficiency, the role of a trusted advisor remains invaluable in helping clients navigate the complexities of wealth and life planning.