Only one in five (18%) 18–34-year-olds think they would benefit from receiving financial advice in the future, according to research from St James’s Place (SJP).
The sixth chapter of SJP’s Real Life Advice Report, published today (5 December), shows nearly one in three (29%) say their situation is too simple to require advice.
Meanwhile, 14% have not considered financial advice because they are not aware of its potential benefits, and 13% think it’s too early to take it.
SJP said barriers to access must be broken to encourage more people to seek the support they need.
The report also found 18–34-year-olds are twice as likely as 35-54-year-olds to turn to social media for information about finances and money.
SJP said better awareness of the benefits of financial advice is required to encourage younger generations to seek the support they need.
Its CEO, Mark FitzPatrick, said: “In today’s world, rising living costs, delayed homeownership and the decline of traditional pension schemes have created immense pressures for younger generations.
“Yet there is also the promise of the great wealth transfer for some, which could redefine financial opportunities.
“These factors make financial planning more critical—and yet more complex—than ever before.
“While it is good news that young people are thinking about their finances earlier on, our study shows that too many simply feel that that ‘financial advice is not for them’ or aren’t aware of how it can help.
“It’s critical that we continue to raise further awareness and break down the barriers preventing people from accessing the advice or guidance that can help them.
“Having support to navigate life’s uncertainties and point people in the right direction can be life changing.”
SJP is urging the industry to focus on training more advisers, closing the gap between guidance and full holistic advice, and change perceptions around financial advice.
FitzPatrick added: “We’ve seen how financial advice has empowered individuals to overcome challenges, realise their aspirations and build resilient futures.
“Misplaced perceptions and outdated views of financial advice keeps millions from experiencing the benefits that could help them navigate today’s increasingly complex financial landscape. Acknowledging this is only the beginning.”
SJP’s Real Life Advice Report explores the benefits of accessing financial advice or guidance through diverse real-life stories from its advisers and clients.
The report, released in a series of chapters, aims to highlight how financial advice and guidance can benefit everyone.
