Amid Uncertainty, Investors Increasingly Turn to Financial Advisers
18 JUN, 2025
After 15 years of low interest rates, high returns, and relatively smooth sailing, individual investors around the world are now concerned about the impact the current period of instability could have on their long-term investment goals, with ramifications for financial decision-making and planning. A survey conducted by Natixis Investment Managersamong over 7,000 individual investors globally reveals that 70% are worried about the effect of instability on their finances.
As uncertainty prevails, the survey of investors with more than $100,000 in investable assets found that nearly three-quarters (73%) would now choose security over returns in their investment approach, with 72% concerned that markets will become more volatile in future.
As a result, investors are increasingly seeking clarity. They need help understanding what interest rate cuts mean for their investments and are looking to better grasp which investment opportunities best match their current financial needs.
In such uncertain times, the perceived value of professional advice remains high: although trust in many sources has declined over the past four years, respondents now place the greatest trust in their adviser (91%) when it comes to investment decisions, with 95% of Spanish investors surveyed stating the same. Notably, 43% of Spanish respondentstrust artificial intelligence for financial advice – a figure broadly in line with the global result.
Investors Losing Ground to Rising Prices
Inflation continues to top the list of financial fears for individual investors (51%). Two-thirds (66%) say they are currently saving less due to rising everyday costs, and over half (59%) state that inflation has eroded their gains. As a consequence, 38% say it is now more difficult to meet their long-term goals – particularly those at the lower end of the wealth spectrum – and 45% of average retail investors say their goals are increasingly out of reach.
Investors also do not anticipate inflation abating anytime soon. Even as inflation nears the 2% target set by central banks globally, fewer than half (41%) believe that high inflation is a thing of the past.
Moreover, investors are increasingly concerned about preserving what they earn. A third of investors (34%) rank taxesas their third greatest financial fear, and 70% believe that post-tax returns are more important than pre-tax – a sentiment that is also reflected in the services they seek from their financial adviser. When asked, 74% of advised investorsglobally said that managing tax obligations is a key aspect of financial planning with their adviser.
Lowered Expectations Narrow the Gap with Advisers' Views
Given the current environment, investors have tempered their return expectations for this year, aiming for 7.3% above inflation for 2025 – a 33% drop from the 10.9% returns they claimed to have achieved last year. Among Spanish investors, expectations have dropped from 13.4% to 6.7%, one of the lowest among countries surveyed – ahead only of Switzerland, South Korea, and France. This marks a 50% reduction in expected returns compared to last year.
However, investors remain cautiously optimistic, with most expecting this to be a temporary dip in performance and hoping to achieve returns of 10.7% above inflation in the long term. For Spanish investors, this figure drops to 9.1%.
Yet financial advisers consider this long-term target of 10.7% above inflation overly ambitious, suggesting a more attainable goal would be around 8.3%. Notably, the gap between investor expectations and adviser recommendationshas significantly narrowed, from 42% in 2023 to the current 28%.
However, even these more moderate expectations involve considerable risk. Chasing double-digit returns often requires substantial investment in equities and exposure to market volatility. This presents a challenge, as only 53% of investors say they are comfortable taking the necessary risks to earn higher returns. Investors are also beginning to scrutinise their current investment strategies more closely, with nearly half (48%) fearing that if the Magnificent Seven falter, their portfolios will suffer disproportionately.
For this reason, investors will need to think carefully about the current landscape, balancing their return aspirationswith their risk tolerance.
Investors Explore Emerging Asset Classes and Opportunities
Amid the unstable performance of public markets, investors are seeking opportunities elsewhere for 2025. Like institutional investors, the surveyed individuals are focusing on the potential of private markets to enhance returnsand diversification. Overall, 44% of respondents say the more they read about private assets, the more they want to invest, and 50% believe the returns justify the extra expense.
Return potential is a key part of the appeal, with 34% feeling they are missing out on the best opportunities by sticking to public markets – a figure that rises to 44% in Spain. That said, 56% say that while they are interested in investing, they are concerned about liquidity.
As for Artificial Intelligence (AI), retail investors are generally not fully invested in the trend. While 79% of wealth managers say AI has the potential to accelerate profits over the next decade and 63% of institutional investors believe it will drive technological growth in 2025, individual investors are less enthusiastic: 51% globally think AI is a bubble about to burst.
Investors Want a Financial Adviser
Amid so much market uncertainty, investors place great value on advice and seek a comprehensive relationship with their adviser. Beyond portfolio strategy, investors are looking for support in planning retirement income (46%) and turn to advisers for financial planning services (46%) as well.
Many individuals globally want a more personal approach. While 52% of wealth managers expressed concern earlier this year that AI is turning robo-advisers into a serious competitive threat, personal aspects remain a priority in adviser relationships: 33% say they value their adviser’s understanding of their personal circumstances, and 31% also want someone who simply listens. Only 40% trust algorithms and AI to support their investment decisions. Social media ranks lowest in terms of trust, with just 17% saying they rely on posts they read when making decisions.
