What will clients be expecting from advisors in 2025? The answer contains something of a contradiction: investors are increasingly looking for customization and flexibility while also demanding simplified and transparent products. The solution to this conundrum is to take an educational approach that leverages digital technology. Advisors who can personalize strategies to align with clients’ evolving goals and clearly communicate these new features will gain a competitive edge.
The growth in the popularity of annuities—particularly FIAs—is expected to continue through the next few years. Carriers are responding to consumer demand by developing products with adjustable features such as the ability to modify payout schedules, add (or remove) riders, and amend death benefits. Advisors who can personalize strategies to help clients maintain control over their policies will stand out. While consumer awareness of annuities, understanding remains limited. More product features also means there is more for advisors to explain.
Historically, the barrier to annuity adoption has been their perceived complexity. As financial products grow in volume and intricacy, clients will place even greater value on transparency. This is an opportunity for advisors to demonstrate expertise and value. While surrender charges and fees are unavoidable, advisors who proactively educate clients about how products work—their benefits and potential drawbacks—will gain trust. The goal is to show how the overall value and benefits of the policy outweigh any concerns about fees. Transparency not only builds confidence but empowers clients to make decisions that align with their financial goals. Simplifying complex products through clear communication will position advisors as trusted guides
Technology plays a critical role in bridging the gap between complexity and clarity. To enhance transparency, advisors can leverage technology to break down complex concepts and simplify decision-making. Tools like visual breakdowns, easy-to-read policy summaries, and interactive explainer resources empower clients to make informed decisions without feeling overwhelmed.
The demand for digital processes and communications will inevitably continue to rise in 2025. Clients and prospects prioritize advisors who offer secure online platforms for tracking annuity and insurance policies, making premium payments, or managing account details in real time. While many of these features are carrier-provided, showcasing them to clients demonstrates added value. In particular, tools such as mobile apps, virtual consultations, and interactive retirement calculators will be key differentiators. Advisors who embrace these technologies and develop secure, user-friendly interfaces will not only streamline client interactions but also foster trust and satisfaction.
The benefits of digital adoption are clear, while the risks of falling behind are significant. According to a recent survey, 25% of investors globally would consider firing advisors who fail to modernize and adopt new technologies. Yet many producers view their technology as outdated (44%) or unsuited to their purposes (31%). This presents a unique opportunity for advisors to enhance their digital capabilities and distinguish themselves from the competition.
In 2025, advisors who embrace a client-centered, tech-forward approach will not only meet expectations but exceed them. The ability to simplify complex products, provide clear value, and integrate seamless digital solutions into the client experience will define success. Those who adapt to the shifting landscape will cultivate loyalty, expand their client base, and thrive in a dynamic financial environment.