Your next wave of clients will be more investment savvy

The next generation of clients coming to financial advisers for help could already be pretty clued up on their finances and want more from the relationship.

Young savers are leading the way on pensions and UK investments know-how, according to new research from Pensions UK.

It reveals a widening generational divide in pension engagement, with younger savers emerging as the most informed and proactive group.  

Younger adults say they have a higher awareness of where their pension is invested compared to older savers. A total of 31% of those aged 18 to 34 say they know what their pension is invested in, compared with 21% of those aged 35 to 54.  

Younger savers are also more likely to say they have made changes to their investment options, with 21% saying they have done so compared with 12% of middle‑aged savers.  

They are also more interested in domestic investments (22%) preferring UK investments even if returns are lower, compared with only 13% among older groups.  

This is according to independent research carried out online in February with a nationally representative sample of 1,567 UK adults aged 18 and over who are not retired.

This finding echoes a range of other research that points to younger people, those currently in their 20s, digging into their finances with more intent than those of the same age in previous generations.

From access to trading apps on their phones to an exposure to online financial influencers, young people today have an abundance of opportunities to engage with their finances – and many are grabbing them with both hands.

What does this mean for financial advisers?  

Potentially that the next cohort of clients you get through the door will expect a more proactive partnership from the start. They may come with their own ideas of what they want and how they want to save and invest. Clearer goals for the future. A firmer grasp on investment concepts and how they work.

All this is going to require advisers to lean into their trusted expert status even more. To focus on the content of client meetings and being a reliable collaborator.  

If you need to free up some time to step more fully into that part of your role, The Timebank can help lift off the weight of the back office. Our team of professional paraplanners know their way around a suitability report like the back of their hand, leaving your hands free to welcome more clients – young, old and everyone in between.

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