How Younger Generations’ Investment Appetite Creates Strategic Opportunities for Financial Advisers

Recent research reveals that younger generations are demonstrating a significantly stronger appetite for investing than older demographics, creating both immediate opportunities and long-term strategic advantages for UK financial advisers. However, capitalising on this trend requires understanding the unique characteristics, challenges, and preferences of Gen Z and millennial investors.

The Investment Appetite Gap Between Generations

Research from Stratiphy has revealed a stark generational divide in investment behaviour. Almost half (47%) of 18-34-year-olds in the UK have invested in the past 12 months, compared to just 23% of those over 55. This represents more than double the investment participation rate, indicating a fundamental shift in how younger generations approach wealth building.

How Behavioural Science Transforms Financial Advice Relationships and Creates Competitive Advantage

The financial planning industry increasingly recognises that successful advisory relationships extend far beyond technical expertise and portfolio performance. Research demonstrates that emotional and behavioural factors often outweigh purely financial considerations in client decision-making, creating significant opportunities for advisers who understand and leverage these insights to build stronger client relationships and differentiate their services.

The Emotional Foundation of Financial Advisory Decisions

According to research from Morningstar, emotional factors account for approximately 60% of a client’s decision to hire an adviser, compared to 40% for financial factors. This finding challenges the traditional assumption that clients primarily seek advisers for technical expertise or investment performance.

Legacy Giving: A Strategic Marketing Opportunity for Financial Advisers

Published: 20 August 2025

A new study by Rathbones reveals a significant gap in the philanthropic planning market that presents substantial opportunities for forward-thinking financial advisers. The research, highlighted in Third Force News, shows that whilst wealthy families increasingly want to leave money to charity, nearly half are deterred by legal and financial complexity.

The Market Opportunity: Growing Demand Meets Service Gap

The data reveals compelling trends that suggest a substantial market opportunity. Among high-net-worth individuals with average estates exceeding £3 million, 42% cite legal and financial complexity as the primary barrier to including charitable gifts in their wills. Additional barriers include lack of knowledge (39%) and uncertainty about where to begin (26%).

How financial advisers can position themselves around intergenerational wealth concerns

Executive Summary

The 2024 Budget has created unprecedented tax anxiety amongst UK investors, with 45% of clients expressing greater concern about their financial future according to HSBC Life’s 2025 “Three I’s” Report. Forward-thinking adviser firms are transforming this challenge into a competitive advantage by repositioning their wrapper selection expertise—particularly through onshore bonds.

The New Tax Reality: Why Default Strategies No Longer Work

Rising Tax Burden Creates Adviser Opportunity

The 2024 Budget’s changes—including increased capital gains tax rates and frozen income tax thresholds—have driven demand for tax-efficient solutions. However, HSBC Life’s comprehensive report reveals a concerning gap: while client anxiety soared, only 56% of advisers routinely explain wrapper tax implications to their clients.