Young investors are reforming their relationships with their advisers. A recent Fidelity study found more investors have begun to work with an adviser since the start of the pandemic. And, from May 2020 to June 2021, more than a quarter of advised investors hired a new adviser, according to the study. Of the investors surveyed, younger workers, identified as “Gen XYZ,” or those who were born after 1965, are looking to their adviser for support with their health, family, work and wealth. In fact, the study found that 34% of younger investors want their adviser to offer life guidance outside of traditional financial advice. When working with younger investors, advisers should consider offering services such as career coaching; real estate planning; philanthropic planning; or environmental, social and governance (ESG) solutions, Fidelity says. Gen XYZ investors are also prioritizing their digital experience with advisers. According to the survey, 48% of investors born after 1965 were more likely to relate to a financial adviser with a social media presence than one without. Additionally, 65% said they would prefer to work with an adviser in a paperless firm rather than a firm that uses paper statements. As a result, younger investors are looking for digital, on-demand communication from their advisers. Throughout the pandemic, younger investors were more likely to adapt to digital communication with their advisers, such as videoconferencing, chatting online or texting, than older investors, according to the survey. Fidelity adds that it’s likely these investors will expect their adviser to be available through these channels now.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of September 2021 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.