Millennials and Generation Z are actively engaged in saving, investments and inheritance planning, a new report by TIME Investments reveals.
In its report ‘The Intergenerational Wealth Report 2023’, TIME Investments said 94% of Millennials (aged 27 to 42) and Generation Z (aged 18 to 26) earning over £50,000 a year have cash savings or investments. Many are already holding significant sums; 18% have over £250,000 while a further 10% have savings between £100,000 and £250,000 and 14% between £50,000 and £100,000.
More than a fifth (21%) said they plan to save between £10,000 and £20,000 every year, with 27% targeting over £20,000 per year.
The research, which surveyed 500 people, showed that 56% already use a professional financial adviser and wealth manager, primarily for help with the best savings and investment vehicles, followed by retirement planning and lastly, intergenerational planning.
Of the proportion that do not use an adviser, the key reasons were a lack of understanding around what advice can offer them, the cost and a decision to manage their own finances. However, nearly half (46%) of this cohort said they were likely to use an adviser in the future, with 34% unsure.
Tom Mullard, business line director at TIME Investments, said: “Our report demonstrates the scale of the opportunity for advisers when it comes to targeting younger generations. For those who have already achieved significant earning power, there is a huge appetite to save and invest and indeed, for many to seek advice about how best to do this if they have not done so already.
“For those who are undecided about using a wealth manager, building relationships and ensuring they see the value of advice and the range of advice that can be given will be key to converting them into long-term clients.”
