View more on these topics

Advisers struggling to reach younger savers

Young-Couple-Youth-Teen-Student-saving-for-retirement-700x450.jpg
Retirement saving needs to happen younger, report says
A third of advisers struggle to engage with potential clients younger than 45 years old, according to a recent survey from Aegon, despite the need for earlier retirement saving.
Three-quarters of advisers recognise that the biggest threat to people’s financial future is not taking an interest in their finances early enough, but 33 per cent admit they find it targeting a younger client base a challenge.
11 per cent said they were now actively targeting younger clients.
Aegon’s Adviser Attitudes Report, which tracks attitudes and concerns of the UK financial adviser market, reveals 78 per cent of clients are currently over 45, but the collective desire to break that cycle is there.
Conducted among 252 financial advisers in June, the survey cites the current economic climate and rising inflation as key hurdles to overcome when attempting to engage with potential clients.
It says 62 per cent of 18-30 year-olds had less money at the end of the month than they did six months ago, with more than half having to cut back the amount they saved every month in order to accommodate the rising cost of living.
Aegon pensions director Steven Cameron says: “There have been huge strides in getting more people saving for retirement with nearly eight million people now saving for retirement through auto-enrolment.
“This includes younger age groups and while many under the age of 45 are now saving regularly, they may be doing so without fully understanding how best to meet their long term financial goals.
“Advisers have a key role to play, providing valuable advice on a wide range of elements, including setting appropriate contribution levels and advising where to invest to meet long-term aims.”
He adds that “streamlined advice”, which focuses on a particular need, will help attract younger clients.
Other commentators have suggested that the Lifetime Isa could help retirement saving among the young.

Recommended

Retirement - thumbnail

Pension freedoms: stop the scams

At the beginning of 2015, we highlighted that the new pension freedoms that come fully online on 6 April also represent a very attractive opportunity for the criminal fraternity to scam savers out of some, or all, of their accumulated retirement savings.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. The simple reason is, the powers that be don’t consider them important enough !

    Mr Corbyn proved that at the last general election, he pushed the right buttons and they came out in the thousands to voice their opinions ….

    Financial services cant help (to a large degree)advice is to expensive, no chance of mortgage (unless we rethink how we lend money) high cost of living coupled with low wages/minimum wage, higher priorities (latest phone, new car, etc etc etc) and AE is about as pleasant for them as a fart in a space suit, and lets face it, the regulator, instead of wasting millions on adverts promoting ambulance chasers and rubbishing the industry at every given opportunity, should be (IMHO) promoting the virtues of good sound financial advice, remind me what was the article the other day…. people who sought financial advice were on average £40,000 better off.

    Oh and those that argue advice is to expensive for them (which I whole heartily agree)then the regulator need to rethink how advice can be delivered, and stop poking at robo advice, that is not the answer, look at the rule book, and the massive paperwork involved in delivering advice.

    I shudder to think of the many millions spent by companies to set up a robo offering, that may never fly,for ever doomed to the FCA’s sand pit …. oh you have to laugh at the irony of it all….

Leave a comment