Contents
The views and data on this page should not be taken as a recommendation or advice. Testimonials are from genuine financial advisers and investors who have given permission for their comments to be used. Names have been removed to protect privacy.
The confidence gap
Our survey tells us that financial advice breeds investor confidence. And the degree to which it does is stark. Only 6.5% of affluent advised investors feel unconfident in volatile markets compared with 25% of non-advised investors. Confidence declines as investors approach retirement. While 83% of investors feel confident making investment decisions when markets are volatile, this drops to 74% for the over 45s. This is in line with industry evidence* from risk-profiling firms that shows risk tolerance and capacity for loss drop off markedly from age 45 as these investors approach the ‘fragile decade’ around retirement and their thoughts increasingly turn to the preservation of capital.
*Dynamic Planner, 15-item Attitudes to Risk Questionnaire (2026).
Asked about their emotional response when markets fall sharply, almost 7% of advised investors say they feel anxious and consider making changes. The proportion of less affluent non-advised investors saying this jumps to 20%. Essentially, without an adviser, investors are around three times as likely to experience anxiety and consider acting on it.
The value of advice
Volatile markets can cause emotions to run high. When markets are benign, investors may struggle to distinguish between luck, skill and structure. In a sharp drawdown, those distinctions become more apparent. Investors who take financial advice often report lower levels of worry, helping them navigate periods of uncertainty with more confidence and perspective.
Much of that support comes through behavioural coaching. Helping clients manage emotions, maintain perspective and stay committed to long-term plans is no longer a peripheral skill – it is increasingly central to effective advice and a key differentiator from technology-only solutions. This importance is recognised by both advisers and investors, although advisers may still underestimate its contribution. First, our survey found that 96% of advisers agree that a significant part of the value they provide comes from helping clients stay disciplined and avoiding emotional decisions, while 81% of investors say their adviser makes them less likely to react and make short-term changes during periods of market volatility. Most advisers (93%) say volatility conversations are primarily about reassurance. Yet around half (51%) estimate that behavioural coaching contributes less than 30% of the value they provide.
This suggests advisers may still understate the impact of one of their most important roles. Just over three-quarters (77%) believe their advice adds at least 2% to client portfolios each year, despite much of that value potentially coming from helping clients avoid costly behavioural mistakes and not just from investment selection.
While reassurance and behavioural coaching are central to helping clients navigate volatility, they are not always recognised as key drivers of long-term investment outcomes. As digital tools and AI take on more routine investment tasks, human judgement, context and behavioural coaching become increasingly important differentiators. The ability to help clients stay disciplined and confident during periods of uncertainty may prove to be one of the clearest measures of advice's enduring value.
A shift in adviser self-perception
In investing, uncertainty and anxiety often go hand in hand. Our research reveals that 46% of investors and 62% of advisers expect market volatility to increase over the next 12 months, with unpredictable politics and policy decisions amplifying a sense of global instability. The outlook is not shared equally. Younger investors are more optimistic than their older peers: they are almost six times more likely to believe volatility will decrease over the next 12 months and four times more likely to expect less geopolitical disruption. By contrast, older investors tend to anticipate a more unsettled environment, heightening the importance of support that helps them stay focused on long-term goals.
Against this backdrop, advisers are increasingly valued not simply for their investment expertise, but for the behavioural support they provide. Indeed the role of providing advice, reassurance and discipline is not just to protect clients from market movements but to help them navigate uncertainty without abandoning long-term plans – a shift that is increasingly redefining how advisers perceive their own value.
Things to consider for your client conversations
Anusha Mittal
Managing Director – Individual Life and Pensions, M&G Life
Confidence starts long before markets move
In more uncertain markets, the pressure to act builds quickly.
The Compass findings show how easily sentiment can shift: Without advice, uncertainty can turn into anxiety and the urge to act. With advice, those same moments are more often met with perspective and control.
Most advisers will recognise those conversations. They are less about allocation and more about reassurance, helping clients make sense of what’s happening and whether to stay the course.
Yet that isn’t always how advice is described. Technical expertise often takes the lead, while the behavioural side sits more quietly in the background. The findings suggest that balance may be the wrong way around – clients place real value on feeling supported through uncertainty and on having the confidence to stay with a plan when it matters.
I believe there’s something to take from that. Not a need to rethink advice, but to be more explicit about what clients value. Because when clients look back, it’s often the conversations that gave them the confidence to stick with a decision, not just the decision itself.
Methodology
We surveyed 500 men and women from across the UK, aged 18 and over, who actively keep track of their investments, representing both advised and non-advised investors. They are grouped into three categories: advised investors with more than £100,000; non-advised investors with more than £100,000 (described as 'affluent')'; and non-advised investors with less than £100,000 invested (described as 'non-affluent')'. Censuswide carried out the research between 6 and 12 February 2026.
In addition, we surveyed 150 UK-based financial advisers. Research in Finance carried out this survey between 17 and 20 February 2026.
We also carried out in-depth qualitative interviews with four advisers and four investors to help articulate the survey findings. The Agency Partnership conducted these interviews on behalf of M&G between 25 and 27 February 2026. Percentage numbers have been rounded up or down to the nearest whole number.
Also in this issue
Download the full report
In the first edition we set out to understand how investors and advisers are experiencing uncertainty, how decisions are shaped in those moments and what helps clients stay confident in their choices.
