According to new research from Scottish Widows, younger consumers such as millennials even want Financial Planners to help them prepare for what Scottish Widows calls ‘adulting’ - the events which will shape their adult lives such as having a family and getting married.
One in four (24%) 18-34 year-olds said they wanted their adviser to offer real-life scenario exercises for situations such as marriage, divorce, and having a family, four times as many as those over 35.
Scottish Widows surveyed 203 UK IFAs and 2006 UK adults in February this year to provide the insights into people’s attitudes to seeking financial advice.
The company says its findings present an “opportunity” for advisers to offer a more holistic approach to Financial Planning, as just under half (45%) of advisers currently offer these types of scenario exercises, while a further 27% plan to.
The Lloyds Bank-owned financial provider says the data suggests that developing new ways to meet the needs of younger clients could re-shape the way IFAs work with people. New ways of communicating, the rise of responsible consumption and broader wellness trends will impact customer expectations, it says.
Those aged 18-34 are much more open to new forms of communication, according to the research.
When it comes to receiving annual statements, 20% of people aged 18-34 said they would use an automated chatbot for information, almost three times the overall average of 7%. And more than one in 10 (17%) of young people said they like to be contacted via social media, more than three times the overall average of 5%.
While a quarter (23%) of people would like advice on how to invest ethically, this rises to a third (32%) of those aged 18-34 however four in 10 IFAs (42%) are currently experiencing little demand for support in investing ethically.
Jackie Leiper, distribution director at Scottish Widows, said: “The landscape of the advice market has changed dramatically in recent years, and is still evolving within a growing demographic that hasn’t traditionally had the same need for advice in the past.
“There will also be a greater need to create advice models that reflect the growing intergenerational opportunity around inheritance, and as a result we are seeing IFAs adapting to continue to provide valuable support at milestone moments and in between.”