Three quarters of advisers believe that UK savers are not tackling their long-term financial planning early enough, saying that it is the biggest threat to people’s financial security in retirement.
The finding has been published in a new study of financial advisers’ opinions on how people access guidance by Aegon, which has also revealed that a third of advisers admit that they find it a “real challenge” to reach clients who are under 45.
In its Adviser Attitudes Report, the insurer also revealed that one in nine IFAs are now actively targeting younger clients. 68 per cent of those who Aegon questioned for the report said that streamlined advice, which focuses on a particular need, has a role to play in attracting a younger client base.
Aegon has said that the current economic environment and rising inflation were making it harder for younger people to accumulate savings. Recent research from Aegon has uncovered that two thirds of those aged 18 to 30 have less money at the end of the month than they had six months ago, and they are also far more likely than other age brackets to be diverting money away from savings.
More than half (52 per cent) of the same demographic group have had to reduce their monthly savings to help with the increased cost of day-to-day living.
Aegon pensions director Steven Cameron said that although many workers aged under 45 were now saving regularly thanks to auto-enrolment, many were doing so without fully understanding how best to meet their long-term financial goals.
“By engaging with savers early in their financial journey, advisers can put them on the right track,” added Cameron.
“Advice needs differ with life stage so it’s important to offer relevant and timely insights and support, with technology offering new opportunities. Advisers also see streamlined advice as appropriate for helping auto-enrolled clients make fund choices within their employer’s scheme.”
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