Financial advisers looking to attract younger clients
- 74% of advisers think engaging too late in long-term planning is the leading threat to people’s future financial security
- A third admit that they find it a real challenge to reach those under 45
- Encouraging signs that 1 in 9 advisers now actively targeting younger clients
Three quarters (74%) of advisers have raised a red flag about people in the UK not tackling their long term financial planning early enough, ranking it as the biggest threat to financial security in retirement, according to Aegon’s new ‘Adviser Attitudes Report’*.
The report, which tracks attitudes and concerns of the UK financial adviser market, reveals that with three quarters of advisers’ clients (78%) aged over 45, they are looking to engage clients earlier to break the cycle. Although it’s early days, around one in nine (11%) advisers are already looking to close the advice gap and target younger people so that they understand the benefits of investing early. But early engagement isn’t always straightforward, with a third of advisers (33%) stating that they find it a real challenge to reach this younger group.
A factor making the challenge increasingly difficult is the current economic environment and rising inflation. Recent Aegon research revealed that two thirds (62%) of those aged 18 to 30 reported rising prices have left them with less money at the end of the month than they had six months ago, and they are also far more likely than other age brackets to be diverting money away from savings. More than half (52%) of those aged 18-30 have had to reduce their monthly savings to help with the increased cost of day-to-day living**.
Steven Cameron, Pensions Director at Aegon said: “There have been huge strides in getting more people saving for retirement with nearly 8 million people now saving for retirement through auto-enrolment***. This includes younger age groups and while many under the age of 45 are now saving regularly, they may be doing so without fully understanding how best to meet their long term financial goals. Advisers have a key role to play, providing valuable advice on a wide range of elements, including setting appropriate contribution levels and advising where to invest to meet long term aims.
“By engaging with savers early in their financial journey, advisers can put them on the right track. Advice needs differ with life stage so it’s important to offer relevant and timely insights and support, with technology offering new opportunities. Advisers also believe ‘streamlined advice’, which focusses on a particular need, has a role to play in attracting a younger client base, with nearly seven out of ten (68%) of advisers considering it a useful way of attracting younger clients. Advisers also see streamlined advice as appropriate for helping auto-enrolled clients make fund choices within their employer’s scheme.”
*Research conducted by Opinium amongst 252 UK Financial Advisers. The fieldwork was conducted 21 - 27 June 2017.
**Aegon Inflation Research. Sample involved interviews with over 617 advised customers on Aegon’s customer and consumer panel on the 31 May 2017
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Notes to Editors
- In the UK, Aegon offers retirement, workplace savings and protection solutions to around two million customers, and employs more than 3,450 staff. More information: https://www.aegon.co.uk
- As an international life insurance, pensions and asset management company based in The Hague, Aegon has businesses in over twenty five markets in the Americas, Europe and Asia. Aegon companies employ over 28,000 people and have millions of customers across the globe. Further information: www.aegon.com
- Aegon is the Lead Partner of British Tennis.
Aegon is a brand name of Scottish Equitable plc. Scottish Equitable plc, registered office: Edinburgh Park, Edinburgh EH12 9SE. Registered in Scotland (No. 144517). Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 165548. An Aegon company. www.aegon.co.uk
© 2017 Aegon UK plc.