Surge amongst Millennials and Generation Z seeking financial advice, stimulated by the pandemic

The pandemic stimulated a shift in financial priorities for many, and with that came the emergence of a new generation of financial planners, with more Millennials and Generation Z (Gen Zs) seeking financial advice than ever before.

So, who are the new planners, and what’s changed?

Millennials are largely defined as anyone born between 1981 and 1996, whilst Gen Z are those born between 1997 and 2012. They are the generations that have grown up in a largely tech-laden world, with access to a proliferation of digital information, and together account for approximately 46% of the global population.

Millennials and Gen Zs are arguably the most susceptible to economic downturns, as we saw during the COVID-19 pandemic, but are also equally determined to hold themselves and others accountable on society’s most pressing issues, as uncovered in Deloitte’s Global 2021 Millennial and Gen Z survey,highlighting a desire to manage personal finances in a more sustainable, impactful way.

The pandemic no doubt elevated concerns about personal financial situations for many Millennials and Gen Zs - a recent report conducted by Prudentialconcluded 74% and 58% of Millennials and Gen Zs respectively now feel the need to seek financial advice, prompted largely by:

• · Unexpected windfalls
• · Getting into financial difficulty
• · Income uncertainties
• · Wanting to begin a sustainable investment journey
• · Saving for the future
• · Receiving inheritance

As personal wealth burgeons, millennials and Gen Z set to inherit trillions

Personal wealth in the UK has swelled in the last 30 years - fuelled primarily by pension freedom and the growth in property prices. As a result, Prudentialconcludes an estimated £5.5 trillion is expected to be passed to the next generations in the UK over the next 25 years.

Mufaddal Travadi, Chartered Financial planner here at Smith Cooper Independent Financial Solutions (SCIFS) comments “Millennials and Gen Zs are set to inherit record sums of inheritance within the next few decades, which presents a multitude of financial planning opportunities.”

“Whilst Millennials and Gen Zs plans for the future are likely to differ from those of their parents and relatives before, financial planning is a multi-dimensional process which often spans several generations, so it is reassuring to see an increase in those seeking advice early on.”

Pandemic spurs intergenerational planning

Paul Hamilton, Chartered Financial Planner here at SCIFS comments “We’ve seen a real uptick in intergenerational financial planning, driven largely by changes within the tax and legal landscapes, but also by families wanting to protect and cultivate their wealth, ensuring as much as possible is passed onto the next generation.”

“The volatility and insecurity triggered by the pandemic has prompted many people to seek advice from a financial adviser, as many reframe their financial priorities and rethink retirement plans as they look for ways to build long-term, intergenerational financial health and prosperity that meets multiple needs.”

Financial planning fit for generations

Here at SCIFS, we look after both families and individuals, devising and implementing methodical financial planning solutions. We take the time to get to know our clients, understanding their motivations and their concerns, as well as their short, medium, and long-term objectives.

If you would like to arrange an initial discussion with one of our dedicated chartered financial planners, please do not hesitate to get in touch.