💡 56% of young investors unlikely to seek their support, according to new survey by Invessed
💡 New Research from Invested Reveals More Than 50% of Young Investors Risk Financial Health
💡 A concerning 56% of young investors are unlikely to seek professional investment advice
Younger investors in the UK do not prioritise building and managing wealth, according to a new survey conducted by Invessed in association with YouGov; the survey also highlights a significant lack of engagement and comfort with wealth management among investors born after 1965.
The new customer engagement survey, entitled ‘Defining Wealth for a New Generation’ unearthed the following key findings:
- 56% of younger investors are unlikely to seek professional advice due to prohibitive fees or old-fashioned practices.
- 51% of respondents said they feel they have little or no control over their finances.
- 63% of female respondents said they don’t feel comfortable with basic investment principles, with 72% admitting they don’t actively monitor their investments.
- 47% of respondents say they save nothing or too little of their income.
This 2024 survey of 2,068 adults above 18 reaffirms a growing concern that younger investors don’t feel comfortable or engaged with the Asset and Wealth Management sector. It underscores the pressing need for wealth advisors to adapt their offerings to ensure engagement among this future client base.
The data highlights uncertainty among younger UK investors regarding their financial futures over the next five years. Over half of respondents said they feel they have little or no control over their finances. This uncertainty is compounded by decreasing financial literacy rates among this demographic, low savings, poor investment habits, and infrequent monitoring of active investments. Moreover, high fees and a preference to personally manage finances currently deter younger investors from seeking professional investment advice.
With an estimated $84 trillion generational wealth transfer in process from Baby Boomers, wealth advisors must find new ways to engage with younger investors.
Invessed’s survey highlights that this effort would benefit from including targeted education and support designed to increase comfort and understanding of investment principles. In doing so, the Asset and Wealth Management sector can begin to build trust and demonstrate value with younger investors.
Speaking on the new survey, Theo Paraskevolpoulos, CEO and Founder of Invessed, commented: “Our Client Engagement Survey underlines the attitudes of Generation X, Millennials, and Generation Z towards their financial future, showing their discomfort with investment principles and their lack of active investment monitoring. Wealth advisors must respond to the issues raised by this survey and find new ways to connect more effectively with this demographic. If not, they risk losing their grip on this potential client base.
"If the Asset and Wealth Management sector continues to deter younger investors, we all could feel the consequences. This issue could worsen the already growing generational gap in key economic areas. Younger investors must benefit from professional support in building and managing wealth. However, this won't happen if outdated practices persist in the sector. Our research underscores the ineffectiveness of current approaches and should serve as a wake-up call."
Invessed focuses on delivering only relevant information to avoid overwhelming clients with excessive data. By using simplified language and adopting a digital-first approach, the company's platform caters to the needs of younger investors. Since its launch, Invessed has partnered with financial institutions and Asset and Wealth Managers like Iolcus Investments, Momentum Global Investment Management, and Bowmore Wealth Group. It provides investment reports on over €200 billion in Assets Under Management (AUM).
Read more about Invessed’s customer engagement survey, "Defining Wealth for a New Generation."
For further information on Invessed, contact James Doyle at Sky Parlour PR
+44 7538 102 337