The value of younger advisers “may be bigger than we realise”, according to new research by Aegon and NextWealth.
Overall, only 17% of the 200 financial advisers surveyed by the two firms said they believed hiring younger colleagues would help them to attract new clients.
However, the same study showed that in the past 12 months, advisers aged under 45 generated the largest proportion of their personal revenue from new clients (22%) compared to all other age groups.
By contrast, advisers aged 45-54 saw 17% of their revenue come from new clients, while it was 14% for those aged 55-64, and 16% for advisers aged 65 and over.
Advisers aged under 45 are also more than twice as likely to be working with new clients that have simpler needs than the next closest age group (33%, compared to 15% of advisers aged 55-64).
NextWealth and Aegon’s latest research guide, ‘Organic Growth for Financial Advice Firms’, highlights the role younger advisers could play in growing advice firms.
Diary of an aspiring adviser: Getting younger people involved in advice
Heather Hopkins, managing director at NextWealth, said: “Growth is a team sport, and having a range of different views, skillsets and ideas can only be a good thing for advice firms looking to lay the groundwork for achieving long-term strategic value.
“The firms building enduring value are doing several things in concert, including developing talent at every career stage. Hiring younger advisers can support that strategy when coupled with new ways of working that lift the whole team.
“Our research also shows that younger advisers draw in clients from a wider range of circumstances and sources.
“By pairing this new energy with the experience already in the industry, firms that invest in younger talent now could be in a favourable position to build the next few decades of trusted relationships.”
______________________________________________
For more practical information on how to get started in financial advice, please visit our Future Financial Adviser community. We tell you how to take the first steps, how to get ahead and what attributes you need to flourish. Even better, we can put you in touch with helpful contacts.
