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Tax and diversification advice most valued by young HNW Brits

Tech-savvy generation ‘still eager to receive tailored guidance on the complexities of managing wealth’

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Financial advice and wealth management firms should not delay their interactions with the next generation as the majority of younger UK investors are already active in the space.

RBC Wealth Management surveyed 600 Brits with a minimum of £500,000 ($631,201, €587,658) of investible assets and found 79% of 25–34 year olds have a wealth management solution in place, which the firm described as a ‘wealth management solution’ encompasses providing services for investments, wealth planning, trust and fiduciary, banking and custody, as well as credit and financing.

Nearly a third (31%) have either started using a wealth management solution within the last six months or plan to find one in the next six months, while 6% claimed to not need one.

When looking for a wealth management solution, 25–34-year-olds placed the most importance on getting advice on tax, diversifying assets and efficiently planning for their future, as well as advice on how to manage the responsibility and emotion of having wealth. This contrasted with 55–65-year-olds who valued guidance on investment management the most highly.

The top reasons why respondents are hesitant to get a wealth management solution was because they lacked sufficient understanding of the industry and the products and services available (29% of 25-34 year olds) and because the solution did not fit with their values (24% of 25-34 year olds).

The survey comes two months after RBC’s Jersey arm inked a £1.6bn deal to acquire wealth manager Brewin Dolphin.

Not all about technology

Katherine Waller, head of new sales delivery at RBC Wealth Management, said: “We found that a large proportion of younger respondents currently have or plan to have a wealth management solution in the near future.

“Even though this tech-savvy generation are familiar with accessing information and financial solutions online, the research shows that they are still eager to receive tailored guidance on the complexities of managing wealth. We know first-hand that younger generations place value on receiving insights and being constructively challenged on their views, and we play a key role in helping them understand financial products and the responsibility that comes with having significant wealth.

“Financial planning should not be viewed as something that only applies to older generations. It is crucial to demystify wealth management services in the eyes of the younger generation and educate them as early as possible on how to plan for their future as their future starts today.”

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