2016/17 RESEARCH REPORT SUMMARY

The way products are promoted and discussed is more of an issue/barrier to taking advice than there being a lack of appropriate products.
There is currently too much focus on investment returns and past performance, and not enough on meeting personal/life goals which are more important to women. The industry should incorporate this finding into all its touchpoints with clients.
Women generally feel less confident when it comes to making investment decisions and require support from advisers to help them feel comfortable around investing. It is important to engage both parties in a joint relationship.
Empathy and relationship building are key to female client retention. This includes the adviser building relationships with other family members where appropriate. Firms should provide next generation programmes which would likely appeal to women with children.
Women value advisers who take a holistic view of their circumstances and are able to help them understand how investments can help them meet their life goals. Investing in line with personal values is more important to women.
Women also value high quality in person interactions so having a multi-channel approach is important.

52% of those who earn over £100,000 per annum and are expecting to receive an inheritance have discussed Powers of Attorney or later life care with the generation above, but this falls to only 22% when income is below £30,000 per annum.
44% of Individuals who anticipate receiving an inheritance are reluctant to open a discussion within their family unit citing concerns about mentioning mortality.
58% of people in the UK had not discussed inheritance with their family members.
Up to 90% of beneficiaries are not using their parents’ wealth manager.
There is a general mistrust of financial institutions amongst Millennials.

Out of 7 billion people globally 1.8 billion are Millennials making them the largest generation globally.
Over 1/3 of 25-35 year olds not confident they are saving enough for their long term future.
A better educated client base will shift back some of the responsibility and understanding of investment risks toward clients.

Research has shown that Millennials do not necessarily want to just be a number and that cost is not always the driverwhen deciding whether to invest ot not
The aftermath of the financial crisis has caused mistrust amongst Millennial clients. This has been exasperated by lack of cost transparency and the fact that they had less financial knowledge than previous generations.
The industry is regulated in a manner that puts barriers between firms and young people. It drives a use of language and risk warnings that put people off.
Millennials are uncertain about the outlook for their financial futures. Many have a financial hangover from university, relatively low disposable incomes and significant debt to tackle.
The industry is relatively short-term in its behaviours. Fee transparency also serves to make cross subsidy from HNW clients to lower net worth clients less possible as HNW clients inevitably object to paying higher fees.

2016/17 Research Summary