Written by: George Prior
A growing number of under 30s are seeking financial advice, according to data released by one of the world’s largest independent financial advisory and fintech organizations.
deVere Group has revealed that there has been a 54% year-on-year jump in the number of inquiries from potential clients under the age of 30 who are seeking to work with a professional adviser to devise and implement a financial planning strategy.
Nigel Green, chief executive and founder of deVere Group, comments: “The sharp increase in the number of under 30s seeking out advice, once again, debunks the myth that younger generations are not interested in building a plan for their long-term financial security.
“It would be a reasonable assumption to make that the year-on-year increase has been largely driven by the pandemic.
“It has brought into all-too-real focus how things can quickly change, how important it is to have a back-up/emergency plan, and value more than ever what really matters to them. For most, this includes ensuring that they can enjoy the opportunities and lifestyle that they desire.”
In March this year, a deVere poll of 450 clients found that seven out of 10 people will not splurge excessive savings accumulated over the pandemic.
When asked ‘Are you likely to spend the majority of the extra money you have managed to save over the last 12 months?’ 72% responded ‘no’, 16% said ‘yes’ and 12% ‘did not know.’
Mr Green continues: “Whilst it’s a fool’s game to generalize about any given cohort, anecdotally, our advisers who are working with the under 30s report that there are some definite trends.
“Perhaps unsurprisingly, more than other generations, the under 30s – who are ‘digital natives’ having grown up under the ubiquitous influence of the internet and other technologies – demand digital solutions such as fintech apps alongside their personalized financial advice.
“This gives them immediate, on-the-go, low-cost access to, use and management of their money.”
Another trend, says the deVere CEO, is impactful saving and investing.
“Our advisers say that, typically, younger people want to use their savings and their investments not only to improve their own lifestyles but for the betterment of their communities and the environments.
“Having more control over their financial affairs is a critical part of their wider activism on issues such as human rights and climate change.”
Mr Green concludes: “Perhaps more than ever, the under 30s are showing a desire to be financially resilient and put their long-term financial goals at the heart of their decision-making process.
“I believe that this ‘think about tomorrow first’ attitude is likely to be a permanent phenomenon due to recent seismic cultural, social and economic shifts.”