Younger advisers are more likely to be working with new clients but their value is underappreciated, new research from Aegon has revealed.
Its latest research guide Organic Growth for Financial Advice Firms found that only 17% of advisers said the hiring of younger advisers would be the most helpful when trying to attract new clients, making it the eighth most popular choice.
However, Aegon said its findings also suggest that the value of backing younger advisers may be greater than they realise. In the past 12 months, advisers aged under 45 generated the largest proportion of their personal revenue from new clients (22%).
Advisers aged 45-54 saw 17% of their revenue come from new clients, while it was 14% for those aged 55-64 and 16% for advisers aged 65 and over.
Advisers aged under 45 are also more than twice as likely to be working with new clients that have simpler needs than the next closest age group; 33% compared to 15% of advisers aged 55-64.
Heather Hopkins, managing director at NextWealth, said: “Growth is a team sport, and having a range of different views, skillsets and ideas can only be a good thing for advice firms looking to lay the groundwork for achieving long-term strategic value.
“The firms building enduring value are doing several things in concert, including developing talent at every career stage. Hiring younger advisers can support that strategy when coupled with new ways of working that lift the whole team.”
Hopkins added: “Our research also shows that younger advisers draw in clients from a wider range of circumstances and sources. By pairing this new energy with the experience already in the industry, firms that invest in younger talent now could be in a favourable position to build the next few decades of trusted relationships.”
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