Financial advisers ‘caught between two worlds’ in push for younger clients

Financial advisers are “caught between two worlds” as they navigate the tension between proven ways of working and the need to adapt to connect with younger generations, according to Nucleus.

Its Voice of the Adviser Survey found that while traditional values, such as word-of-mouth, long-standing relationships, and independence, remained strong, advisers faced a new wave a pressures, including digital disruption, changing client expectations, rising regulatory demands, and the feeling that younger generations were slipping out of reach.

While 86% of advisers believed the profession needed to do more to appeal to younger clients, less than half were currently working with them.

Nearly two-thirds said referrals were a key source of new business, with just one in 10 using social media to connect with potential new clients.

More than half (59%) had seen clients negatively impacted by following poor or unregulated financial tips online, and only 28% felt ‘finfluencers’ had a positive role to play in providing access to financial advice or guidance.

Three quarters (75%) said that staying on top of changing requirements had been a challenge, and changes to government policy was ranked as the biggest challenge to advisory firms, with regulatory changes ranked third.

Mergers and acquisitions remain part of the conversation, with 71% of advisers believing it is getting harder for smaller, independent firms to survive, while 83% of firms felt they were doing a good job of attracting and developing talent in house.

Nucleus noted that while the report highlighted potential tensions in the advice space, optimism remained as firms were investing in talent, succession planning, and smarter ways of working.

“The voice of advisers is clear: change is not coming - it's already here,” commented Nucleus distribution director, Paul Bagley.

“The question is no longer whether the profession will transform, but how it will transform in a way that serves both advisers and the clients who desperately need their help and support.

“Our survey results highlight that while regulatory demands and digital disruption continue to reshape the landscape, advisers remain committed to delivering trusted, personal advice in a changing world.

“By investing in talent, embracing smarter ways of working, and staying focused on what clients really value, many firms are not only navigating today’s challenges – they’re helping to define the future of financial advice.”

Nucleus technical services director, Andrew Tully, added: “The FCA’s proposed targeted support regime is a positive step towards closing the planning and advice gap by making regulated guidance more accessible - especially for those dealing with pensions and investment decisions.

“It offers advisers a valuable opportunity to engage with underserved groups, demonstrate to people that advice may be an option to consider at the appropriate time, and promote greater financial inclusion. It’s crucial the government and regulators continue to do more to highlight the benefits of taking regulated financial advice.

“We’ll continue to champion financial advisers and planners because they’re key to improving confidence of those approaching and in retirement and to lobby government and regulators for a clearer more supportive environment that enables the profession to thrive.”



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