According to a YouGov and Invessed survey, younger UK investors, particularly those born after 1965, prioritise wealth management but are less engaged in and at ease with it.
Moreover, the survey confirmed a rising concern that younger investors in the UK are not comfortable or involved with the Asset and Wealth Management sector, highlighting the critical need for wealth advisers to adjust their services to ensure engagement among this prospective customer group.
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The research relied on fieldwork done between 29 February and 1 March, 2024. Also, a total of 2,068 adults were polled online, and the findings were weighted to reflect all UK adults over the age of 18.
The Defining Wealth for a New Generation survey produced a number of important conclusions:
- The study reveals that 56% of younger investors are hesitant to seek professional advice due to high fees or outdated practices;
- The majority of 51% of respondents feel they have limited or no control over their finances;
- 63% of female respondents expressed discomfort with basic investment principles, while 72% admitted to not actively monitoring their investments, and
- 47% of respondents claim to have no or too little savings.
Why are younger UK investors so hesitant?
Furthermore, the survey highlighted that young UK investors avoid getting professional counsel because of the high costs, bad investing practices, and lack financial literacy, which all contribute to this uncertainty.
In line with Invessed’s poll, baby boomers are starting to transfer $84trn in wealth between generations, thus wealth advisers need to provide focused education and support to younger investors in order to establish trust and show value.
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By GlobalDataTheo Paraskevopoulos, CEO and founder of Invessed expressed: “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 advisers 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.”
Invessed offers simplified, digital-first investment reporting tailored to younger investors, partnering with financial institutions and asset and wealth managers to provide over €200bn ($217bn) in assets under management.
