The advice industry must break down access barriers to encourage younger generations to seek the support they need, says St James’s Place.
Data from its Real Life Advice Report shows that 18- 34-year-olds are twice as likely to use social media channels (31%) than 35- 54-year-olds (14%) and much more likely to turn to specific social media influencers.
With younger generations facing economic hurdles earlier in life, including a more challenging set of circumstances to get on the housing ladder as well as more responsibility to provide for their retirement later in life, St James’s Place said more must be done to support this cohort and the industry must embrace digital channels further.
The research shows that amongst those that currently don’t access advice, less than a fifth (18%) of 18-34 year olds think they would find it beneficial in the future. Just under a third (29%) say their personal situation is too simple to require advice, while 14% have not considered financial advice because they are not aware of its benefits and 13% think it’s too early to take professional financial advice.
Mark FitzPatrick, CEO of St James’s Place, said: “In today’s world, rising living costs, delayed home ownership and the decline of traditional pension schemes have created immense pressures for younger generations. Yet, there is also the promise of the great wealth transfer for some, which could redefine financial opportunities. These factors make financial planning more critical and yet more complex than ever before.”
“It’s critical that we continue to raise further awareness and break down the barriers preventing people from accessing the advice or guidance that can help them.”
St James’s Place is urging the industry to train more advisers; close the gap between guidance and full holistic advice and change perceptions around financial advice to illustrate how it can make a tangible difference as well as extend its outreach to those who feel advice “isn’t for them.”
Fitzpatrick added: “We’ve seen how financial advice has empowered individuals to overcome challenges, realise their aspirations, and build resilient futures. Misplaced perceptions and outdated views of financial advice keep millions from experiencing the benefits that could help them navigate today’s increasingly complex financial landscape. Acknowledging this is only the beginning.”
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