Health and Wealth Top Client Values in 2023, Lumiant Research Reveals

Lumiant, a leading advice engagement and client experience platform, has released new research revealing the prevailing values driving clients' lives in 2023. Conducted over twelve months with a sample size of 58,527 clients from America, Australia, and New Zealand, the study underscores a significant emphasis on physical and financial wellbeing — and highlights the growing importance of a holistic approach to financial advice tailored to the individual.

The research found that the top value for clients in 2023 is to "Become more active and healthy" — underscoring a growing awareness among individuals about the importance of prioritising physical wellbeing alongside financial goals.

The Lumiant experience uses a values session to uncover clients' priorities, with advisors asking clients to rank a set of values in order of importance. Nearly 2,000 values sessions took place across America, Australia, and New Zealand, revealing the core values that define what clients consider their best life. Notably, there are significant differences between Australian and American clients — Australians are much more focused on health and wealth, while Americans place greater emphasis on social connections.

“"The financial advice industry is undergoing a significant transformation. In the past, the focus was primarily on wealth accumulation. However, we're now seeing a shift towards a more holistic approach that considers clients' values and life goals. The growing recognition that financial wellbeing is not just about wealth, but also about living a fulfilling life, is driving this shift. Firms prioritising this philosophy stand to gain: stronger referrals, higher retention rates, and increased revenue. Ultimately, it's about guiding clients toward a life rich in purpose and fulfilment — which our research reveals is about spending more time with those they love." — Blake Wood, CEO, Lumiant”

Key Findings

Lumiant's advice experience encompasses eight dimensions of wellbeing as identified by research from the University of Michigan: Emotional, Occupational, Physical, Social, Financial, Environmental, Spiritual, and Intellectual. While Emotional wellbeing ranked highest among clients globally, there were notable differences between Australians and Americans in how they prioritise each dimension.

The headline findings include:

• Emotional wellbeing ranked highest globally, with clients rating it 7.9 out of 9 for living their best life.
• Australians prioritise Occupational wellbeing, particularly financial independence, while Americans place greater emphasis on Physical wellbeing.
• Both Australians and Americans share concerns about financial peace of mind, despite making limited progress in this area.
• Australians feel more connected to their environment, while Americans prioritise social activities and relationships.
• Clients set an average of 5.3 goals per household — a testament to the breadth of planning that a values-led approach enables.

Different Values for Different Generations

The research also explores meaningful generational differences in values and priorities.

Gen Y is focused on building strong financial foundations. Their top two values — "Feel more confident in my finances" and "Support and protect those I love" — are both financial in nature. American Gen Y clients differ from their Australian counterparts in being more altruistic, with "Helping others live a more purposeful life" ranking in their top five and "Dedicate more time to those I care about" climbing to number two.

Gen X seeks a balance between work and family. "Make work optional" climbs five positions from Gen Y to enter the top five. Financial values remain important, but the need for financial confidence reduces — with "Support and protect those I love" and "Become more active and healthy" taking the top two spots. American Gen X clients again differ from the global average, with "Dedicate more time to those I care about" taking the top spot, alongside values focused on enhancing their financial position, spending without guilt, and staying healthy to support their families.

Baby Boomers emphasise health and wealth, with financial and physical values making up four of their top five value cards. The fifth — "Nurture my relationships" — reflects the importance of maintaining strong social connections in retirement. American Baby Boomers also want to give back, with "Volunteer my time" appearing among their top five priorities.

The Case for Values-Led Advice

The study highlights the practical implications of financial planning that genuinely aligns with clients' values and aspirations. By understanding and addressing what clients truly care about, advisors can create more meaningful and impactful financial plans that enhance overall wellbeing.

Blake Wood sees this shift as the next stage in the evolution of advice:

“"We're witnessing a shift in the financial advice industry. Gone are the days of solely investment-focused strategies — instead, we're embracing holistic planning and fiduciary responsibility. Leading this transition are seasoned advisors offering bespoke advice experiences honed over decades of practice. The problem is that $10.4 trillion in assets are at risk, with 38% of advisors eyeing retirement within the next ten years.
As the industry leans towards modelling and investment-centric tools, the essence of financial advice risks being overlooked — understanding clients and their life aspirations. At its core, it's about fostering relationships, uncovering clients' true desires, and crafting plans that resonate deeply."”

Lumiant's research is a testament to the firm's commitment to providing the most relevant and impactful insights for the financial advice industry — and to making the case that values-led advice is not just better for clients, but better for business.

Download the full report below for more information on Lumiant's 2023 research findings.

[Download: Top Client Values in 2023 (PDF)]