Seeking financial advice seems like a reasonable option if you don’t know how to manage your money. This is especially true if you have a complicated financial situation that includes trusts, income from different sources, or investments. But even those just trying to plan their retirement, save more or increase their net worth could benefit from advice.
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Still, it seems that many are still avoiding asking for help, even from professionals. More importantly, families are not seeking advice for generational finances, even if their money is joined or can be transferred through generations.
Are all generations seeking financial advice?
Savings and investments advisors Prudential recently conducted a survey involving 1,000 UK adults to understand how different generations are using financial advisors. They also asked whether and when families are sharing advisors for intergenerational financial planning.
The results show some generations are more open to accepting financial advice than others. According to Prudential, 74% of Millennials have seen or plan to see a financial adviser. For Gen Z, this number falls to 58%.
Despite the financial difficulties brought up by the pandemic, only 3% of those interviewed said that cost was the reason for not seeing an advisor. Still, a further 23% said they had no interest in looking for financial advice.
On the other hand, many responded that the pandemic had increased their interest in getting their finances in order to protect their income or learn to invest better.
Why are Gen Z and Millennials seeking financial advice?
Prudential’s research shows that different generations turn to financial advice for different reasons. Some of these reasons have to do with goals and age. Others have to do with different financial priorities or interests. Let’s take a look at six more popular reasons for these two generations to seek financial advice:
1. Suddenly getting extra money
For Gen Z, coming into a windfall (28%) or receiving an inheritance (20%) are important reasons to seek advice.
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2. Solving debt
Around 20% of Gen Z respondents would seek the help of a professional if they got into financial difficulty.
3. Saving for a big goal
Figuring out how to save for a home deposit is the goal of 24% of those in Gen Z searching for financial advice.
4. Figuring out the investment market
Millennials are more preoccupied with investments. More than a quarter of them (26%) want to start investing and need guidance. Another 25% want to learn how to invest ethically, a major consideration for many new investors.
5. Dealing with requests for help
The survey shows that 27% of Millennials would seek guidance if they received a financial request from a family member or friend.
6. Getting on the property ladder
While an important reason, only 16% of Gen Z are putting house hunting on the list of reasons for seeking financial advice.
Where can you get financial advice?
Do you need help finding a professional to guide you in your financial choices? A directory like Unbiased can help you search through 27,000 FCA-regulated and qualified professionals to find the right match.
When choosing a financial advisor, Citizens Advice recommends asking lots of questions. This includes finding out what the services will cost you and what that amount will cover. You should also ask about the person’s qualifications and whether they’re registered with the FCA.
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