The survey also highlights a significant lack of engagement and comfort with wealth management in 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. 

The new survey was based on fieldwork conducted between the 29th of February and the 1st of March 2024. A total of 2,068 adults were surveyed online, with the results weighted to make them representative of all UK adults aged above 18. The revealing survey reaffirms a growing concern that younger investors don’t feel comfortable or engaged with the Asset and Wealth Management sector and underscores the pressing need for wealth advisors to adapt their offerings to ensure engagement among this future client base.

The data also suggests a level of 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, as the survey highlights, high fees, and a preference to personally manage finances currently deters 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. As Invessed’s survey highlights, this effort would also benefit from the inclusion of 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 future client base.

“If the Asset and Wealth Management sector continues to deter younger investors, the consequences could be felt by us all. This issue could further exacerbate an already growing generational gap in key economic areas. It’s essential that younger investors can benefit from professional support to build and manage wealth, but this won’t happen if those in the sector continue with outdated practices. Our research highlights the futility of current approaches and should come as a wake-up call to the sector.”

Rather than overwhelming clients with excessive data, Invessed concentrates on only delivering information that matters. By using simplified language and adopting a digital-first approach, the company’s platform is tailored to the needs of younger investors. Since launch, the company has already partnered with financial institutions and Asset and Wealth Managers delivering investment reporting on over €200 billion in AUM.