Young people are “most likely” to have a financial adviser, despite common perceptions which suggest otherwise, according to a survey by advice firm Progeny.
While it found the advice gap is still an issue for the industry, its results suggested that the 18 to 34-year-old demographic is “leading the way” when it comes to seeking financial advice.
Of those with an adviser, the largest proportion (41 per cent) comes from the above age group compared with 17 per cent from 45 to 54-year-olds and 18 per cent from the over-65s.
But perhaps more worryingly, only one in four respondents said they had a financial adviser, and of the three-quarters who did not, 83 per cent said they felt that a financial adviser “wasn’t for them”.
A third said that financial advisers were too expensive and 28 per cent felt that financial advisers were for people with more money than them.
Eleven per cent of respondents said they went to Google for financial advice.
The study also found many people felt they needed to know more about a range of financial products and topics, including pensions (29 per cent) and investments (27 per cent).
Covid-19 has made people less confident about their financial future, and the survey found two in five respondents aged over 45 were worried about not having enough money to retire.
Progeny chief executive Neil Moles says: “As the survey results show, the advice gap persists. On the one hand, people recognise they need to know more about financial matters but at the same time feel that financial advice is not for them.
“Many of the people who would benefit hugely from advice don’t realise they need it, which means we, as an industry, are clearly not doing a good enough job of demonstrating the advantages. It’s up to us to show how a good financial plan can deliver life-changing results – financially and emotionally – not just for the individual but for future generations of their family.
“There is work to be done but there are also reasons to be optimistic. The fact that 18 to 34-year-olds are the most likely demographic to have a financial adviser is a sign that the young generation get it. But we need build on this so that choosing a financial adviser becomes a natural step in life, and second nature to the next generation.”