Younger financial advisers are more likely to be working with newer clients, a new study by NextWealth and Aegon has indicated.

Research featuring the views of 200 financial advice professionals revealed that when asked to pick the factors they believed would be most helpful when trying to attract new clients, just 17% of advisers said the hiring of younger advisers, making it the eighth most popular choice.

However, NextWealth and Aegon suggested their findings could indicate that the value of backing younger advisers may be greater than they realise.

In the past 12 months, advisers aged under 45 generated the largest proportion of their personal revenue from new clients (22%). Advisers aged between 45 and 54 saw 17% of their revenue come from new clients, while it was 14% for those aged between 55 and 64, and 16% for advisers aged 65 and over.

Advisers under the age of 45 were also more than twice as likely to be working with new clients that have simpler needs (33%) than the next closest age group, which was advisers aged 55 to 64 (15%).

“Growth is a team sport, and having a range of different views, skillsets and ideas can only be a good thing for advice firms looking to lay the groundwork for achieving long-term strategic value,” commented managing director at NextWealth, Heather Hopkins.

“The firms building enduring value are doing several things in concert, including developing talent at every career stage. Hiring younger advisers can support that strategy when coupled with new ways of working that lift the whole team.

“Our research also shows that younger advisers draw in clients from a wider range of circumstances and sources. By pairing this new energy with the experience already in the industry, firms that invest in younger talent now could be in a favourable position to build the next few decades of trusted relationships.”

---