Millennials say advisers are inaccessible and too expensive

Millennials say advisers are inaccessible and too expensive

Millennials view financial advice as an industry of "exclusivity, inaccessibility and high cost," according to research carried out by the financial advice trade body.

The Personal Investment Management and Financial Advice Association surveyed millennials to find out their attitudes towards wealth management and financial advice.

The trade body found that while millennials were "digitally competent" and expected their adviser to be as well yet they also valued face-to-face advice, which led Pimfa to recommend the use of "bionic" or hybrid advice models.

The poll of 178 millennials found 78 per cent of them believed they could only receive advice if they had investible wealth in excess of £50,000 but a significant number wanted advice when they had £10,000 or less.

The authors of the report admit they were "surprised" by the negative views of financial advice which emerged and said the industry should strive to improve them.

Liz Field, chief executive at Pimfa, said: “We strongly advocate for building a culture of savings, investment and professional advice in the UK and as such, it is important to understand the diversity of our client base. 

"Societally we are now experiencing a new phenomenon of five generations working side by side.

"Defining the overall differences of millennials to preceding and proceeding generations is critical to developing an understanding of this cohort as both a future generation of investors and also as a new talent pool.

"Once we better understand millennial perceptions and how to engage with them, we are better equipped as an industry to help them with building their personal financial futures."

The millennials surveyed placed most importance on face-to-face advice rather than technology but when it came to wealth management they wanted both.

The preference was to have an "online with the option of face-to-face" but a "regular face-to-face meeting with an industry professional" was their second choice.

Online-only options appealed to just 12 per cent of those surveyed.

This prompted the report to recommend the use of bionic, or hybrid, financial advice models since these could appeal to a number of generations and allow advisers to appeal to new clients.

The report also highlighted the fact that millennials have less wealth and less loyalty to brands than previous generations.