Younger advisers bring in most new clients, research shows
A recent study has found that younger financial advisers are generating a higher proportion of new business than their older counterparts, despite limited recognition of their value among industry professionals.
The research by NextWealth and Aegon, which surveyed more than 200 financial advice professionals across the UK, revealed that advisers under the age of 45 secured 22% of their personal revenue from new clients over the past year. This figure is higher than the 17% reported by advisers aged 45-54, 14% for those aged 55-64, and 16% for advisers aged 65 and above.
Despite these findings, only 17% of respondents considered hiring younger advisers as a key strategy for attracting new clients, ranking it eighth among preferred approaches.
The study also found that advisers under 45 are more than twice as likely to work with new clients who have simpler requirements, with 33% of this group serving such clients compared to 15% of those aged 55-64.
“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,” said Heather Hopkins (pictured right), managing director at NextWealth.
“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.”
Hopkins added that the research indicated younger advisers are attracting clients from a broader range of backgrounds 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,” she said.
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