More than a third (36 per cent) of advisers say millennial clients are wanting additional support, due to rising living costs and complicated financial needs following the pandemic.
According to Charles Stanley’s Book of Stories 3.0 whitepaper, millennials (aged between 24 and 38) are facing financial complications that may have resulted from the pandemic.
These include things such as managing a reduced or more complex income, or being confronted with unexpected expenses.
Gen X clients (aged between 39 and 53) and baby boomers (aged between 54 and 74) are also facing struggles with 31 per cent and 30 per cent of advisers respectively saying these generations need help.
The consumer prices index rose to 9 per cent in the 12 months to April, driven by high energy prices and transport costs, according to the Office for National Statistics.
As inflation spikes, there is increasing pressure on household finances and nearly a third of advisers (32 per cent) said their millennial clients are concerned about running out of money, while two in five (40 per cent) said their clients are anxious about their investment strategy.
Retirement is also a prominent concern, with 36 per cent of advisers saying millennial clients are worried about funding social care, more so than any other generation.
Charles Stanley head of sales Sean Osborne, said: “The soaring cost of living and sharp spike in inflation means that many people, particularly the younger generation, will find themselves in a position where they are tightening their purse strings more than usual.
“With many unsure or concerned about their future finances, millennials are in need of clear financial planning that will help support them in their future years and achieve financial security. UK households are contending with the biggest financial squeeze in decades and the choice of ‘heating or eating’ is mounting exponentially.”
|18-23 clients (Gen Z)||24-38 clients (Millennials)||39-53 clients (Gen X)||54-74 clients (Boomers)||75+ clients|
|They have a clear idea of what to do with their finances||24%||35%||41%||30%||15%|
|They want additional support||27%||36%||31%||30%||16%|
|They are concerned about running out of money||31%||32%||31%||36%||12%|
|They are not following the advice they have been given||29%||35%||28%||31%||13%|
Source: Charles Stanley
Other concerns advisers found their millennial clients worried about included being financially responsible (37 per cent), while 42 per cent said they want to protect their nest egg.
Yet, despite clients being increasingly concerned about their finances, more than a third (35 per cent) of advisers revealed that millennial clients are not following the advice they have been given, raising concerns over their savings strategies and spending habits against the financial goals they have set out.
Charles Stanley said the millennial generation are most likely to experience classic trigger points with significant financial impacts that may prompt them to seek advice, whether that be starting a family, marriage, experiencing the death of a loved one, undergoing career changes, or buying a property.
Saving for retirement is also a topic starting to weigh front of mind and a combination of factors, including low interest rates, rising inflation, soaring house prices, and stagnated wage growth, also make these trigger moments much harder for millennials than previous generations, it explained.
Osborne added: “The moments that matter to individuals can heavily impact clients’ financial wellbeing, and is something all advisers must be aware of when advising younger adults. Advisers looking to serve the next generation may wish to engage in spending more time holding scenario exercises for real life situations, like marriage, divorce and having a family.