“For example, when it comes to the companies they invest in. Their parents (baby boomers) often held utility companies – perhaps from privatisation, oil companies, and even tobacco companies. Those aren’t usually a preference for the majority of younger (gen X and millennial) clients. There is an increasing trend to invest in companies that have a positive impact on society.
“Other than that, generally younger people feel the need and have the ability to take on more risk. Although that has changed since pension freedoms with more people in drawdown understanding the benefit of a larger holding in equities than those who planned to take annuity. This is mainly down to the time horizon being extended.”
Different priorities
But priorities are not just determined by age.
Ms List says trends are probably more apparent when people are grouped by their circumstances, as you see similar priorities and values appear at different ages for different reasons.
“For example, we often talk about younger people valuing experiences because many savings goals seem unobtainable in the short term,” she adds.
“However, it’s also very typical for people to value experiences, hobbies, and holidays early in their retirement when their free time and finances allow. Similarly, you can see people focusing on saving at all ages: from concerted efforts towards building house deposits, to trying to bolster pension savings shortly before retirement.”
Ms Birtwistle says values across different generations are more aligned than ‘we give them credit for’, as it depends on where in the generational transition the family sits.
She says: “In a multi-generational family, the concept of legacy and being custodians of wealth is often shared by all, despite the fact that their complex family tree means that fourth generation second cousins haven’t grown up ‘around the kitchen table’ together like second generation siblings have.
“Even in families where relationships may be strained, it’s interesting to see how aligned their fundamental family values usually are – in a family who have grown up together, participated in the business or wealth together, they often share the same guiding principles.”
Caroline Cochrane, chartered financial planner at Crandles and Co, adds: “In my experience values are much more aligned than we would perhaps expect. The values 'baby boomers' had when they were the age of millennials may be different than those in their twenties and thirties now but people are more aware of what they can do now.”
