By: 29 May 2024

A new survey conducted by Invessed in association with YouGov showed some worrying findings

56% of young investors unlikely to seek professional advice

Younger investors in the UK do not consider building and managing wealth a priority, according to a new survey conducted by Invessed in association with YouGov. The survey also highlights a significant lack of engagement and comfort with wealth management in investors born after 1965.  

The new customer engagement survey, entitled ‘Defining Wealth for a New Generation’ unearthed the following key findings:

  • 56% of younger investors are unlikely to seek professional advice due to prohibitive fees or old-fashioned practices  
  • 51% of respondents said they feel they have little or no control over their finances 
  • 63% of female respondents said they don’t feel comfortable with basic investment principles, with 72% admitting they don’t actively monitor their investments 
  • 47% of respondents say they save nothing or too little of their income

The revealing survey reaffirms a growing concern that younger investors don’t feel comfortable or engaged with the Asset and Wealth Management sector and underscores the pressing need for wealth advisors to adapt their offerings to ensure engagement among this future client base.

The data also suggests a level of uncertainty among younger UK investors regarding their financial futures over the next five years. Over half of respondents said they feel they have little or no control over their finances.

This uncertainty is compounded by decreasing financial literacy rates among this demographic, low savings, poor investment habits and infrequent monitoring of active investments. Moreover, as the survey highlights, high fees, and a preference to personally manage finances currently deters younger investors from seeking professional investment advice.

With an estimated $84tn generational wealth transfer in process from Baby Boomers, wealth advisors must find new ways to engage with younger investors. As Invessed’s survey highlights, this effort would also benefit from the inclusion of targeted education and support designed to increase comfort and understanding of investment principles. In doing so, the Asset and Wealth Management sector can begin to build trust and demonstrate value with younger investors.

Speaking on the new survey, Theo Paraskevopoulos, chief executive officer and founder of Invessed, commented: “Our Client Engagement Survey underlines the attitudes of Generation X, Millennials and Generation Z towards their financial future, showing their discomfort with investment principles and their lack of active investment monitoring. Wealth advisors must respond to the issues raised by this survey and find new ways to connect more effectively with this demographic. If not, they risk losing their grip on this potential future client base.

“If the Asset and Wealth Management sector continues to deter younger investors, the consequences could be felt by us all. This issue could further exacerbate an already growing generational gap in key economic areas. It’s essential that younger investors can benefit from professional support to build and manage wealth, but this won’t happen if those in the sector continue with outdated practices. Our research highlights the futility of current approaches and should come as a wake-up call to the sector.”

Image: Maxim Hopman on Unsplash

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Robert Welbourn
Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.