AK: For reasons stated earlier, it’s not so much [that younger people are] less in tune, but simply that they face significantly higher living costs, meaning there is less money to invest for the longer term.
Many are auto enrolled into a pension which, while a good thing, but it doesn’t often result in much engagement.
Many passively end up in a default fund and with little or no understanding of important concepts, such as investment risk or industry developments like environmental, social and governance, for example.
A challenge for the industry is that young people can turn to the wrong sources of information - for example, cryptocurrency promotions on TikTok.
FTA: What are some new technological developments in the industry?
AK: Money Alive has been designed to work beautifully on a wide range of devices without the viewer (our advisers' clients) having to download any specific software to enjoy its benefits. We don’t plan to introduce an app for these reasons.
One positive development is that new technology providers are thinking about the front end/consumer experience more - not just the back-office functionality. This can only be good for the future.
Saksha Menezes is an intern at FTAdviser
