Becoming a financial adviser was not a lifelong career wish for me.
Indeed — unlike those who dreamed of growing up to be a doctor or a sports star — few of us, I expect, aspired to be a financial planner!
Perhaps this is to be expected, given the relative profile of advisers. But this observation got me thinking about the visibility of our profession to young people, from the perspective of both the next generation of recruits as well as prospective clients.
On the recruitment side, we could do more to raise our profile within the wider sector. My first exposure to financial advice was through making some adviser contacts while on a ski season, which led me to pursue a career via some work experience. However, I get the sense there is a lack of visibility of what our industry is and does among people of my generation.
Younger clients respond well to having a peer at a similar life stage involved in their advice. We will need a new generation of young advisers to serve them
Maybe this low profile among younger adults is not surprising, given the lack of routes into wealth management. But, with the average adviser age pushing close to 60, it poses an existential challenge for our profession.
The requirement of further professional qualifications may be one deterrent, but the lack of opportunities for entry, via mentorship or training programmes, is significant. Here at Finura we are fortunate to offer apprentice and non-graduate roles, which are proving successful.
The traditional pathway can be overly complex and may limit opportunities for keen graduates to gain early client-facing experience. When I was seeking a graduate role, most recruiters advised that prior industry experience was required; the age-old conundrum.
To attract and retain top talent, we must create more effective avenues for early client exposure and career progression. Otherwise we risk losing talent to more visible industries, compounding the problems of an ageing cohort.
I get the sense there is a lack of visibility of what our industry is and does among people of my generation
Employers may fear that young advisers may not be taken seriously by clients, but this has not been my experience. Instead, firms should look at the future of financial advice and the types of client we are likely to serve. With the largest ever intergenerational wealth transfer on the horizon, and the alarming statistic that 92% of heirs change adviser once they receive an inheritance, advice firms should look to youth recruitment to capitalise on an advice proposition for the Millennial generation.
Younger clients tend to be more tech savvy and have often had exposure to DIY investing; they may feel they don’t need financial advice. But they respond well to having a peer at a similar life stage involved in their advice.
We will need a new generation of young advisers to serve them.
Samuel Allen is a chartered paraplanner at Finura
This article featured in the September 2024 edition of Money Marketing.
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