"Millennials are in need of clear financial planning that will help support them in their future years and achieve financial security."
Gen X clients (those aged between 39 and 53) and baby boomers (aged between 54 and 74) follow, with 31% and 30% of advisers saying they want additional help respectively.
As inflation spikes, putting increasing pressure on household finances, nearly a third of advisers (32%) say their millennial clients are concerned about running out of money, while two in five (40%) say their clients are anxious about their investment strategy. Retirement is also a prominent concern, with 36% of advisers saying millennial clients are worried about funding social care, more so than any other generation. Other concerns advisers found their millennial clients are worried about include being financially responsible (37%), while 42% say they want to protect their nest egg.
Yet, despite clients being increasingly concerned about their finances, more than a third (35%) of advisers revealed that millennial clients are not following the advice they have been given, raising concerns over their savings strategies and spending habits against the financial goals they have set out.
The millennial generation are most likely to experience classic ‘trigger points’ with significant financial impacts that may prompt them to seek advice, whether that be starting a family, marriage, experiencing the death of a loved one, undergoing career changes, or buying a property. Saving for retirement is also a topic starting to weigh front of mind. A combination of factors, including low interest rates, rising inflation, soaring house prices, and stagnated wage growth, also make these ‘trigger moments’ much harder for millennials than previous generations.
Sean Osborne, head of sales at Charles Stanley, said: “The soaring cost of living and sharp spike in inflation means that many people, particularly the younger generation, will find themselves in a position where they are tightening their purse strings more than usual. With many unsure or concerned about their future finances, millennials are in need of clear financial planning that will help support them in their future years and achieve financial security. UK households are contending with the biggest financial squeeze in decades and the choice of ‘heating or eating’ is mounting exponentially.
“The moments that matter to individuals can heavily impact clients’ financial wellbeing, and is something all advisers must be aware of when advising younger adults. Advisers looking to serve the next generation may wish to engage in spending more time holding scenario exercises for real life situations, like marriage, divorce and having a family. Advisers are pivotal in helping clients establish a clear savings strategy and understand how they can reach their financial goals, giving them confidence that they too can create a nest egg, even at a time where financial concerns are at a peak.”
