The financial advice industry should collaborate to help younger generations seek the financial advice and guidance support they need, St. James’s Place (SJP) has argued.

The firm stated that, despite growing financial challenges, better awareness of the benefits of financial advice was required to encourage younger people to seek support.

It outlined ‘focus areas’ to help break down the barriers that are preventing more people from accessing financial advice or guidance.

Digital channels were "critical", SJP said, with 18-34 year olds twice as likely to use social media on average than 35-54 year olds, and more than twice as likely to turn to specific social media influencers.

While turning to parents and friends was found to be important for 41% and 31% of 18-34 year olds respectively, the "growing trend" to seek financial information through social media highlighted the importance for the industry to further embrace digital channels, according to SJP.

Furthermore, SJP’s study found that only 18% of 18-34 year olds who do not access advice think they would find it beneficial in the future.

Twenty nine per cent said their personal situation was too simple to require advice, 14% had not considered it because they were not aware of the potential benefits, and 13% felt it was too early to take professional financial advice.

SJP called on the industry to focus on three actions to help more people overcome the barriers and benefit from financial advice: Train more advisers, close the gap between guidance and full holistic advice, and change perceptions around financial advice.

"In today’s world, rising living costs, delayed homeownership, and the decline of traditional pension schemes have created immense pressures for younger generations,” said SJP chief executive officer, Mark FitzPatrick.

"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.

"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."

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