Value in respect of quality of life was noted by 69 per cent of millennial advised consumers (64 per cent unadvised millennials).
The report shows that millennials have many unmet financial needs, with ability to live a desired lifestyle (39 per cent) and ensuring regular money to live on (37 per cent) being top needs identified by millennials.
It explained that the value of financial planning delivers benefits that far outweigh its costs for advised clients, with the main reason many respondents remaining unadvised is feeling it's “too expensive” (30 per cent) followed by finding someone they can trust (29 per cent).
Most clients (8 in 10) also believe that financial advice provides more value than it costs and that it has made them tangibly better off.
The future of financial planning
Looking ahead, the research found that 75 per cent of millennials currently use apps or websites to manage their finances.
The wealth transfer means that more than half of millennials (53 per cent) expect or have already received an inheritance or major financial support, with two in five of them expecting this to come in the next five years.
Millennials are just as likely to seek financial support from a planner (41 per cent) as from friends and family (43 per cent).
The biggest trigger for millennials to consider seeking advice from a planner is taking control of their money (35 per cent), followed by buying a property (32 per cent) and receiving an inheritance (31 per cent).
Barriers for millennials include cost (32 per cent) and trust (29 per cent).
FPSB explained that if using a professional financial planner, 92 per cent of millennials respondents expect to have digital platforms available to monitor their investments and goals.
They are also most likely to have taken up or to consider online asset trading, with 21 per cent trading since 2020 (11 per cent Boomers and 14 per cent Gen X).
The majority of those with crypto investments intend to invest more in it – 62 per cent of Boomers, 57 per cent millennials and 56 per cent Gen X.
The “fun factor” 45 per cent and “long term growth” 52 per cent are key drivers for millennials crypto investing.
However, the majority, 53 per cent, of Gen Y consider crypto a “very risky investment”.
sonia.rach@ft.com
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