New research conducted by RBC Wealth Management, part of Royal Bank of Canada, shows that four in five (79 per cent) affluent 25–34 year olds in the UK have a wealth management solution in place and nearly a third (31 per cent) have either started using a wealth management solution within the last six months or plan to find one in the next six months. Some 6 per cent claimed to not need a wealth management solution.
When looking for a wealth management solution, 25-34 year olds placed the most importance on getting advice on taxation, diversifying assets and efficiently planning for their future, as well as advice on how to manage the responsibility and emotion of having wealth. This contrasted with 55–65 year old respondents who valued guidance on investment management the most highly.
The top reason why respondents hesitated to apply for a wealth management solution was because they lacked sufficient understanding of wealth management and the products and services available (29 per cent of 25-34 year olds vs 9 per cent of 55–65 year olds) or because the solution did not fit with their values (24 per cent of 25-34 year olds vs 16 per cent of 55–65 year olds). The former highlights the lack of financial knowledge among the young and the latter shows how generations differ in their ideals and mindsets about managing money. While older generations tend to value building their wealth and businesses the most, the young are more concerned about investing responsibly and finding a purpose for their lives.
Commenting on the findings of the survey, Katherine Waller, Head of New Sales Delivery at RBC Wealth Management, says: “We found that a large proportion of younger respondents currently have or plan to have a wealth management solution in the near future. Even though this tech-savvy generation are familiar with accessing information and financial solutions online, the research shows that they are still eager to receive tailored guidance on the complexities of managing wealth. We know first-hand that younger generations place value on receiving insights and being constructively challenged on their views, and we play a key role in helping them understand financial products and the responsibility that comes with having significant wealth.
“Financial planning should not be viewed as something that only applies to older generations. It is crucial to demystify wealth management services in the eyes of the younger generation and educate them as early as possible on how to plan for their future as their future starts today.”
Vikram Anand, Managing Director, Relationship Management at RBC Wealth Management, says: “RBC Wealth Management’s significant experience in serving clients across multiple generations has provided us with a deep insight which allows us to understand and adapt to the changing attitudes towards wealth. This positions us perfectly to continue providing highly personalised solutions to clients, encompassing financial planning, trust and fiduciary services, investment management, banking and credit services. Through RBC’s global capabilities, we are also able to support clients’ complex personal and business needs, for example in global markets, investment banking or managing finances across borders.
“Looking to the future, RBC Wealth Management has adjusted its offering to better service a younger, more tech-savvy client-base, including delivering greater financial education through a range of communication channels, from face-to-face meetings to social media platforms. We work collaboratively in multi-generational teams to better reflect the clients we serve – both the older and younger generation within a family – and to ensure that values are recognised and represented across age groups.”