The hunt for new advisers: what does the future hold?

Summary

• The majority of financial advisers in the UK are in their mid-50s and are now preparing for retirement.

• The financial services industry needs more trainee financial advisers and a more adaptable recruitment process that appeals to a younger demographic of professionals and clientele. 

• Becoming a financial adviser in changing times can be very rewarding in many ways. 

Why do we need new advisers in the financial sector?

The financial services industry has always been dominated by an older demographic. As of 2024, the vast majority of financial advisers in the UK fall into the 50-59 age bracket, while just 0.6% of those in this profession are under the age of 25. 

This has raised questions about the stability and continuation of services in the coming years. When the current majority of financial advisers have retired, who will take over for them? What happens if all the best financial advisers leave the profession due to their age?

We need new, experienced financial sector advisers to ensure that the industry remains relevant and accessible to future generations. A younger demographic of advisers not only keeps the profession afloat but also ensures that emerging financial trends and advancements can be more effectively translated to the next wave of clients. 

Will there be enough new advisers in the financial sector for the next generation?

It can be hard to find a financial adviser who isn’t about to retire. With so few graduates pursuing financial advice as a career, it can be easy to feel like the industry will struggle under the weight of demand in the coming years. But that isn’t necessarily the case. 

 At present, there is a longer turnover period, with older advisers postponing or coming out of retirement in this field. But there is also a growing interest in financial services from younger generations, especially surrounding firms that demonstrate digital and technological savvy. 

With enough educational and recruitment adaptation, the next generation of financial advisers is secure.

What is going to change in the industry once the younger generations step up?

With new generations come new technologies and tech tools, cultural influences, and advancements. As the older generation phases out of the workforce, certain changes regarding procedures, tools, and trends are to be expected as trainee financial advisers enter it. 

• Focus on ethical investing: The push for sustainability, ethics, and ESG compliance is more prevalent than ever, and this will continue to be reflected in the population’s investment interests.

• Integration of fintech and cryptocurrencies: Innovative technologies such as blockchain, AI, and robo-advisers show promise of major themes within the financial services industry moving forward. Clients will need a bridge to manage them effectively.

• Enhanced diversification: Younger generations of investors are focused on highly diverse, multi-asset portfolios that are more adaptable to anticipated economic flux. 

How do we find new prospects for the advisory industry?

For the financial services sector to be sustainable, the next generation needs adequate opportunities and encouragement. Firms should adjust their recruitment strategies to attract new prospects and narrow the generational gap. 

One way to do this is to be open to less experienced hires. 

Making the job pool more accessible can draw in promising new prospects and give them the tools and environment they need to thrive in the financial services industry. Consider setting up a comprehensive trainee financial adviser program to motivate applications and make a career in this sector more appealing to recent graduates and skilled employees. 

Another advantageous strategy here is to become more educated on emerging fintech trends and innovations to demonstrate future viability and attract top talent from around the world. 

What is some advice on how to become a financial adviser?

Those new to the financial field who are looking to break into it need guidance. Here are some expert-approved tips for how to become a financial adviser:

• Seek guidance: Gather advice from the best financial advisers you know—and if you don’t know any personally, make a point of networking with them and others within the industry to gain insights and experience.

• Obtain the necessary qualifications: You can’t become a professional financial adviser in the UK without at least a DipFA. Having the right credentials will make you a more attractive hire and boost your chances of landing an ideal role within a firm.

• Cultivate fintech and AI knowledge: As a new or emerging financial adviser, your strengths will lie in your ability to grapple with current and future technological advancements. 

What does the future look like for financial advisers?

The future of financial advisers looks adaptable, multi-generational, and technology-focused. 

There may be an undoubtedly growing need for new talent in the financial services industry, but its future growth is promising. According to a recent poll, 87% of financial services leaders are “confident” of business growth in 2024. 73% of those surveyed were also confident that the UK would be able to maintain its status as a global financial centre over the next three years. 

The financial sector’s 12% contribution to the UK's economic output is also substantial, with financial services firms contributing more than £110 billion in taxes in 2023.

These figures bode well for the future, as business leaders and the UK government are closely involved in bolstering the sector.

Want to work with Unbiased?

An older generation of financial advisers may have dominated the sector in previous years, but a new era of fintech and advice is emerging. Firms adapting to changing technological and social trends will likely lead the way and secure the best financial advisers for their client base. Knowing how to become a financial adviser can help you secure a position in this evolving and exciting industry that’s in demand.

If you want to grow your firm, Unbiased Pro can match you with clients who are looking for the exact services you offer.