WTP for Financial Planning Services: Who Financial Planners Serve? Estimating the Needs of the Broad Population

The main purposes of this study are to estimate the consumers’ willingness to pay (WTP) for financial planning services by using the survey method and to analyze how well the WTP matches the current service fees. If the WTP well is around the current fixed fee, it indicates that the greater number of consumers regardless of income levels are and will be served by financial planning professionals serve. Otherwise, the financial planning professionals serve limited consumer groups, such as the wealthy. Our findings based on the Double Bounded Dichotomous Choice and contingent value showed that the WTP of our survey respondents with the highest income level was close to the average of the current market price of financial planning services. However, the WTP of the remaining respondents after the highest income level was excluded was close to the minimum market price of the financial services. Financial planners can use our findings to identify the underserved segments and determinants of the WTP. This study suggests that financial planning services should be provided at more diverse price ranges to contribute to the financial well-being of a broader population when there is a big price gap between what markets offer and what consumers are willing to pay.