Age has long been the default lens for client segmentation in financial services. It’s familiar, straightforward and usually lines up with life stages and wealth accumulation.
But as the FCA continues urging firms to better understand their clients, we should ask: does age still serve us as well as it once did, or are we confusing convenience with insight?
In marketing, it’s well understood that age alone is a blunt instrument. Like Orangina? You’ve got more in common with fellow fans than your age group. Crosswords? Flossing? The same applies. Age often says less about behaviour than you’d think. Maybe advisers can take a page from marketing’s book.
Need a sharper example? Picture this: two white British men, both born in 1948, both wealthy, castle-dwelling and twice-married fathers. Would you find it easier to chat with King Charles or Ozzy Osbourne? Demographic sameness doesn’t equal meaningful similarity.
As marketing professor Mark Ritson puts it, “Generational segmentation is the commercial equivalent of astrology.”
Correlation isn’t causation. Not every 60-year-old is affluent. Not every 35-year-old is green
I was reminded of this while reading Tom Browne’s excellent piece on younger advisers earning older clients’ trust. Trust doesn’t come from age — it comes from empathy, mindset and how you show up.
Age tells you how long someone’s been alive. Not how they make decisions.
Age and wealth: A convenient correlation
Yes, older people tend to have more money. The average 65–74-year-old is six times wealthier than the average 25–34-year-old. We generally earn more as we age.
But correlation isn’t causation. Not every 60-year-old is affluent. Not every 35-year-old is green. Warren Buffett only just retired at 94; Robbie Fowler did it at 33. They’re outliers, sure, but FIRE (Financial Independence, Retire Early) communities don’t segment by age. It’s a mindset.
Why generational segmentation doesn’t work
In marketing, generational segmentation has largely been debunked. Ipsos Mori found stronger behavioural and attitudinal ties between people with similar education, income and job types, regardless of age. A wealthy Gen X banker may have more in common with a retired Boomer banker than a tech founder his own age.
It’s tempting to view wealth as a neat journey — earn, save, retire — but life rarely runs in straight lines
Deloitte research found 40% of Millennials were optimistic about the economy, while 60% were anxious. A high-earning but anxious Millennial might relate more to an anxious Boomer than their generational peers.
Trust isn’t about age
Tom’s article wasn’t just about segmenting clients; it was about understanding them.
A 2016 study in the Journal of Financial Services Marketing found trust in advisers was tied more closely to perceived competence, empathy and communication style, not age or tenure.
Another study (University of Georgia, 2020) found attitudinal similarity — traits like openness or conscientiousness — predicted trust more than shared demographics.
Trust is built on mindset, not birth year.
Life stage beats life span
What shapes financial needs isn’t birthdays, it’s life events.
- Buying a home at 33
- Starting a business at 32
- Starting a family at 30
- Selling a business at 49
- Divorcing at 45
It’s tempting to view wealth as a neat journey — earn, save, retire — but life rarely runs in straight lines. These pivotal moments define financial behaviour far more than date of birth ever could.
Rethinking segmentation
Still grouping clients by age or AUM? Ask yourself:
- What are we really measuring: wealth or complexity?
- Are we tagging mindsets or just milestones?
- Is our segmentation systemised or stuck in someone’s head?
- If your segmentation would vanish with your paraplanner, it’s not real enough.
Better segmentation models focus on:
- Behavioural traits: Risk appetite, decision-making, money habits.
- Goals and outcomes: Aligning advice to purpose, not demographics.
- Complexity: Factoring in effort and need, not just affluence.
Many of you already do this intuitively. The opportunity now is to make it intentional and operational. Tag it. Filter it. Share it across your team.
Advisers who want to futureproof their proposition must dig deeper into behaviours, mindsets and values
Take the last market wobble. You didn’t email everyone. But you did scan your mental list — who’s likely to worry? Who needs a call?
That’s attitudinal segmentation. It’s not who you called, it’s knowing who needed to hear from you.
Conclusion: Know the person, not just their age
Age is a useful data point. But if it’s your only one, it’s lazy. Advisers who want to futureproof their proposition must dig deeper into behaviours, mindsets and values.
Because financial advice isn’t about how old someone is. It’s about who they are and where they’re headed.
Harry Webster is head of marketing at P1 Investment Services
