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.