How engaging young people can help to grow your business

• Our research determines young people are interested in life insurance, including 72% of those aged 18 to 24 years and 73% of those aged 25 to 29.
• Young people expect to experience significant life events, including buying a house, marriage or long-term partnership and having a baby within the next 2 and 5 years.
• Young people favour digital platforms, and the modernisation of communications is essential to engage the demographic.

Young people present good business opportunity for Independent Financial Advisors (IFAs). While there may be assumptions that they are less interested in long-term financial planning or that their financial needs are simpler compared to older generations, this perspective overlooks their growing consumer power. By engaging with this demographic, IFAs can tap into a market with increasing financial influence and gain long-term client relationships.

Our recent survey explored the attitudes and behaviours of 300 18 to 29 year olds. It revealed 57% of respondents had either seen or looked for financial advice online within the last six months. Of those individuals, 53% were between the ages of 18 to 24 and 57% between 25 to 29, demonstrating young people are not passive but active seekers of financial advice.

Interestingly, 52% of respondents said they had a basic understanding and 29% a good understanding of life insurance, which indicates an awareness within the younger audience. What’s more, 72% of respondents aged 18 to 24 expressed their interest in life insurance and 73% of those aged 25 to 29, highlighting the importance of protecting themselves and their loved ones.

Despite this, 65% of respondents said they had never consulted with an IFA which presents a great opportunity to engage with the demographic.

We also asked the respondents when they expected to experience significant life events to understand when they may consider insurance services:

• Within the next two years, 24% of respondents believed they would buy a house, 24% get married and 20% start a family.
• Within five years, 27% of respondents expected they would buy a house, 25% get married and 24% start a family.

In knowing this, there is a great potential to cater to these upcoming life events. Engaging with these customers now can position IFAs as a trusted advisor and helping to secure the future whilst growing a client base.

Reflecting, 18 to 29 year olds have grown up immersed in digital technology, influencing how they learn and make decisions. We asked respondents which online sources they would go to for financial advice, the top four responses were:

• YouTube (59%)
• Instagram (46%)
• Tiktok (37%)
• LinkedIn (30%)

Additionally, several specific accounts were referenced for being useful sources of financial advice, including ‘Damien Talks Money’, ‘James Shack’, ‘Hazel Talks Money’ and ‘Sasha Yanshin’.

Our research also highlights the importance of modernising communications to engage with a younger audience. The preference for simple language was consistent with respondents expressing:

“IFAs should keep things simple and clear when talking to me. I appreciate straightforward explanations without all the jargon, it’d be great if they could share information through easy-to-understand formats, like visuals or infographics.”

The desire to communicate in a personalised and friendly manner was also reoccurring throughout the responses.

Young people represent a significant yet unleveraged demographic with fantastic potential in the financial advisory industry. By using online platforms and personalising the approach, IFA’s can effectively engage this tech-savvy generation to build strong, loyal relationships of the future.