Article What does Gen Z want from financial advice?

Known as the first generation of ‘digital natives’, Gen Z is a huge potential client base for financial advisers. Broadly defined as those born between 1997 and 2012¹, there’s approximately 12.9 million so-called ‘Gen Zers’ in the UK (as of 2022) – the oldest of which are now 27.²

It’s a prime age where these potential customers may well be thinking about planning for the future – whether that’s buying a flat, opening a savings account, or contributing towards a pension. But developing services targeted at this tech-savvy generation may not be as easy as you think.

For one, many Gen Zers (also called ‘Zoomers’) are getting their mortgage or financial advice from social media – with TikTok being the preferred medium.³ This could mean that their approach to money might be different, too.

Our recent research of over 1,100 people also found that over half of 18-to-34-year-olds are interested in investing sustainably because of the broader positive impact on the environment, and society.⁴  

Gen Zers are known to be more passionate than generations before them, with a desire to do good – and give back. They tend to value diversity and are progressive – perhaps rejecting traditional norms or lifestyles. Simply put, they want their money to go further.

So, if you’re looking to expand your reach to a Gen Z audience, here are a few things you might want to consider.

Affordability

While the oldest Gen Zers are now 27, the youngest are just 12. It means even those of a working age will likely have limited income and wealth.

Where fees are set as a percentage of the assets under management, the sum might be small. An alternative might be a set fee – but this would need to remain affordable enough for Zoomers.

Tech-friendly

Put simply, Gen Z have never known a time without the internet. They’re highly engaged with it, with social media becoming a key source of financial knowledge.

In fact, on platforms like TikTok, the hashtag #Fintok has over 116,000 associated posts, while #Stocktok has over 216,000, as of October 2024. So, to reach a younger audience, some kind of social media presence is essential.

Being free and instantly accessible has broadened the appeal of financial advice on social media, but it seems some of the most successful financial influencers (AKA ‘finfluencers’) have gained a large following because their jargon-free videos are easy to understand, while being engaging and educational.

Sustainability

Gen Z cares about the environment and sustainability, and they want their money to make a difference.

Our research shows that 46% of those aged between 18 and 34 think investing sustainably has become more important to them over the last three years.⁴ They considered impacts on the environment, including climate change, to be one of the most important reasons for sustainable investment.

It also showed that 43% of 18-to-34-year-olds think over half of their pensions and savings should be invested sustainably. ⁴ Both sets of results indicate that this demographic has a real interest in sustainability. However, the results showed that 78% of those surveyed wanted more information to help them understand sustainable investment to help them make more sustainable choices.⁴

Demonstrating that your business is sustainable, and socially conscious, may help catch the attention of Zoomers. For example, you could start by sharing volunteering or sponsorship projects, followed by promotion of your support with ESG investing.

Riskier assets

According to research, many Gen Zers are already investors – with over half of 18- to 25-year-olds holding some kind of investment. Stocks are the most popular, and at least one in four Gen Z invest in crypto.⁵

Even if you don’t offer crypto investing advice specifically, understanding what’s involved – including the types of products and the risks – can help you guide Gen Z to best meet their needs and interests.

Building long lasting relationships

Gen Zers are going to be your youngest clients. Even though it will be a mix of those who are thinking about their finances carefully and those who are just starting out – attracting and retaining them from an early age could help build lasting relationships as you help them navigate their way through life.

You can also visit our adviser homepage, to find additional resources to support you and your business.