Millennial and Gen Z consumers want financial advice but don’t know where to start

• Over half (53%) of Australians aged 16 to 39 are open to financial advice, compared to 36% for those aged 40 to 59 and only 15% for those over 60.
• 15% of under 40s say they don’t know how to access an adviser.
• 18% say they don’t know what questions to ask.
• Almost two-thirds are open to a digital advice solution.

Wednesday 20 September 2023 Contrary to the widely held belief that financial advice is only for older, wealthier Australians, new research commissioned by Colonial First State (CFS) has found that Millennial and Gen Z consumers are the most open to advice and the most willing to pay for it. 

CFS commissioned market researcher Nature to survey almost 2000 consumers in July 2023, including more than 1200 aged 16 to 39.

The research found that over half (53%) of under 40s are open to advice, compared to 36% for those aged 40 to 59 and 15% for those over 60.

However, despite being open to advice, 35% of under 40s admitted they couldn’t afford it. 

Josh Grace, Group Executive – Customer Office at Colonial First State, said that while cost remains the most significant barrier for those under 40, there is also an awareness and knowledge gap. 

“Many younger Australians want advice but don’t know where to start. The research found that 18% of under 40s don’t know the right questions to ask and 15% admit they don’t know how to access a financial adviser,” he said. 

“It is critical that we raise awareness among younger Australians who clearly want advice but who currently struggle to access it.”

Mr Grace said there is also a role for different advice models to emerge, like digital advice, which can help bridge the gap until they can afford more comprehensive, face to face advice.  

“We want more Australians to get some type of advice and we also want to see financial advisers freed up to be able to provide more tailored and single-topic advice so they can support more Australians to achieve their financial goals,” he said.

“CFS supports a vibrant advice sector. We want to see more Australians benefiting from access to advice and we want it to be easier for financial advisers to provide advice to those who need it.”

The research found that over half (53%) of all Australians are open to digital advice. Only 20% are not open to it and 28% don't know enough about it to say if they are open to it or not. 

There is even stronger demand for digital advice among younger consumers. Two-third of Australians under 40 (63%) are open to a digital advice solution, including one in four who have used it before.

CFS encourages anyone open to financial advice to visit the CFS Find an adviser site and take the first step to accessing a financial adviser to help identify and achieve their financial goals.