Millennials are more likely to turn to technology than to a financial adviser for basic help with their finances, research has suggested.
According to Bud - a new financial comparison and education site for Millennials - people in their 20s need help in managing their money but do not always know where to turn.
Ed Maslaveckas - himself a Millennial at 26-years-old - said he created Bud to help cut through financial jargon and provide a one-stop-shop for young people to help manage their finances.
He described Bud as: “A Moneysupermarket for Millennials”, to help young people make the most of their money, rather than a ‘fintech’ product, adding: “It is time for the industry to move away from talking in tech and finance speak.
“People in the financial services industry need to start focusing on what they can do for their customers. It is not about fintech; it is about making your money go further.”
In a poll carried out by SurveyMonkey on behalf of Bud, 24 per cent of 422 UK Millennials have used a new financial product and only 12 per cent had sought professional financial advice.
It’s not about , it’s about making your money go further Ed MaslaveckasIn 2014, research by the University of Oxford’s Said Business School found young people needed the financial services industry to connect with them more effectively to help them overcome any pension and protection gaps.
Data from the Office for National Statistics shows the average life expectancy of a child born 100 years ago in 1916 is 53.5, compared with 82 for a child born in 2016.
With medical advances and healthcare technology helping people to live longer in ill-health, the need for better financial planning at an early age, to fund pensions and long-term care has become paramount.
However, the Said study of more than 1000 20-somethings found Millennials were more likely to turn to parents or their bank rather than financial services firms or advisers for help.
Where young people get their financial advice (2014 Said study)
Parents | 52 |
Bank | 24 |
Financial advisers | 16 |
Friends | 10 |
Insurers (and insurance agents) | 2.8 (and 2%) |
This comes as research by SelfTrade found the majority of young people do not believe they will ever retire, with 31 per cent thinking they will work well into their 70s.
A significant proportion of these - 31 per cent - feel they will have no option but to work because of their financial situation as they will not have enough savings to fund a comfortable retirement otherwise.
According to Richard Donegan, managing director of Selftrade: “Those beginning to look to the future should take steps to understand what savings options are available to them.
“We’re often impressed by how much younger people have saved up, but hold in cash. While a cash buffer is important, those who can afford to should consider other investment alternatives, particularly if they are thinking long-term.”
