Mind the Gap. Younger investors need advice but are not seeking it.

Theo Paraskevopoulos, Founder and Chief Executive of Invessed, has provided vital insights from the 'Defining Wealth for a New Generation' research report. The report unearths a stark issue: Younger investors desperately need financial advice, yet they are not actively seeking it. This alarming gap has considerable implications.

56% of these younger generations will not seek professional investment advice in the next 5 years.

Younger investors need to accumulate future wealth and prevent the risk to the wealth they are set to inherit. The wealth management industry requires rapid adaptation, as traditional methods and costs alienate a generation seeking professional investment advice.

High fees and the desire for responsible investments that align with their values pose significant pitfalls for younger generations in the investment landscape. This preference leads many to choose self-investment platforms, which often fail to cater to younger investors' distinct needs and can inadvertently nudge them toward speculative investments.

The current unstable economic climate and the cost-of-living crisis make it intimidating for younger investors to contemplate long-term financial planning. Without professional advice offering context and guidance, future investors may postpone their wealth-building journey.

Financial literacy in most European nations leaves much to be desired and could be more balanced. Paraskevopoulos advocates financial literacy in school curriculums, supported by clear, level-headed language encouraging involvement without promoting speculation.

While several financial institutions have made commendable efforts to educate and safeguard investors, there is a need for financial services to shift the narrative from wealth being depicted as greed or conspicuous consumption to being a pathway to a secure future.

The wealth management industry primarily caters to older generations with significant wealth. However, older individuals with smaller investment pots face challenges similar to younger investors but with fewer options as they approach retirement.

Paraskevopoulos predicts that as Baby Boomers pass on their wealth and millennials become the richest generation in history, the younger generation will naturally become more financially savvy. The industry will adapt to their needs. Over the next few years, companies aligned with the right technology to cater to this audience are set to prosper.

Invessed is committed to being at the forefront of this change by providing innovative, tech-driven financial solutions tailored to younger investors. By addressing their unique needs, Invessed aims to help them build a secure financial future and confidently navigate the changing economic landscape.