Dante De Gori

Generation Y individuals are increasingly engaged with their finances and open to the benefits of financial planning, according to a global research report by the Financial Planning Standards Board.

The report, ‘FPSB Value of Financial Planning Research 2023’, reveals that two out of every three Gen Y individuals who are not currently working with a financial planner would consider paying for advice.

This willingness to seek professional guidance sets them apart from older generations, with 60 per cent of Gen X individuals and 50 per cent of Baby Boomers expressing a similar interest.

“They are [also] looking to engage a financial planner soon,” the report says.

Half of those considering it intend to do so in less than three years, and over 30 per cent plan to engage with financial planners within the next three to 10 years.

Gen Y individuals also have different priorities compared to older generations, the report says.

“[They] are more likely to identify mental health, family life, work satisfaction, social life, and physical health as aspects of their life that could benefit from receiving financial planning,” it says.

Additionally, 60 per cent of Gen Y individuals still prefer face-to-face interactions with advisers; however, they are significantly more inclined to use apps or websites to manage their finances compared to older generations.

Some 40 per cent of Gen Y individuals use digital finance tools such as apps for budgeting, while only 33 per cent of Baby Boomers do so.

AMP managing director of advice Matt Lawler said at Striver’s inaugural Brimstone event in September that digital finance tools will co-exist with human advisers in a hybrid model.