How can the industry help young advisers?

One of the biggest challenges currently facing the financial profession is age. Not the age of clients – with retiring baby boomers predicted to contribute to 32 percent growth in the wealth management industry over the next decade[i] – rather the age of advisers themselves.

While the significant demographic and cultural shifts over the coming decades will increase the demand for professional advice, the rate at which the ranks of qualified financial advisers is thinning could seriously see demand far outstrip supply. To put this in context, the simultaneous aging and retirement of financial advisers has reduced the number ready to service the growth of baby boomer clients by 4.3% over the last decade[ii].

Plugging the gap

Advisers typically work with a client base that ranges 10 years either side of their own age. By utilising resources such as Zurich’s Estate planning tool, there is a significant opportunity for advisers to broaden their services to their clients’ children, grandchildren or even parents.

In order to keep pace with this significant growth in demographics and serve increasingly younger client bases, financial advisers need to look to the next generation currently coming into the profession. This is a key reason Zurich is a proud supporter of the talent resource firm Grad Mentor.

Supporting the next generation of advisers

Zurich is committed to sharing best and supporting a thriving financial advice profession. Our partnership with Grad Mentor helps give a greater voice to young advisers at professional development events, who can not only learn from some of the most experienced advisers in the industry, but also share their own unique ideas and fresh perspectives with the profession.

Our WA team also recently provided work experience for a young graduate, which was a successful learning experience for both sides and the great news is we are also seeing a strong push from within the financial advice profession to support the new generation. A recent survey has found that 32 percent of active advisers would consider providing internships (or already do) for advisers starting out in the industry[iii].

Learning is a two-way process

So what insights can the next generation of financial advice graduates provide to the current professionals? Grad Mentor founder recently conducted a survey of young graduates to find out.

The four survey questions were designed to gauge participants’ opinions and perspectives of the profession, with the intention to provide valuable insight into how the new generation can add to advisers’ business, as well as ways to assist with their successful integration into the workplace.

1. Have your perceptions of the financial advice profession been impacted by recent unfavourable media coverage? If yes, how so?

Unanimously all responses to this question was, ‘no’. Some of the elaborated responses have been provided below.

“Coverage has led to improvements in the industry, which is a positive step. This will lead to people seeking advice”.

“Not so much as I have talked to other financial planners who assure me the industry is moving towards a more professional position.”

“I hope that the recent changed in legislation will transform people’s perception of financial planning”.

2. How do you perceive financial advice as a profession compared to other traditional white-collar professions such as accounting, law or medicine, in relation to prestige, earning capacity and job security?

“I believe there is more job security in this profession as you can even create a business at home also there is no limit to earning capacity.”

“Financial Planning adds better value to people’s lives. I believe it educates them and makes them aware of their financial positions. This improves their decision making for the future.”

“I think financial Planning is transitioning from an industry to a profession as it has its own governing body and develops a standard equal to other professions.”

“In light of the FOFA reforms, job opportunities and demand for planners, why wouldn’t you? You need a Master’s Degree to give advice by 2019, incomes on a higher than the above and I see a platform of jobs on seek and LinkedIn.”

“I understand it does not have the same prestige but I think below the surface it is a much more desirable job with higher earning capacity.”

3. What was/is your primary motivation to become a financial adviser? (i.e. do you want to own your own business, or do you enjoy working with people?)

“I have experienced personally how not having a financial plan can affect someone so I want to ensure it does not happen to any other families. I also enjoy working with people.”

“The relationship clients have with their Financial Advisors, how it is more than just their paper work it’s about knowing your client and them trusting you.”

“I dream of one day owning my own business and have a book of clients who are as passionate about reaching their financial goals as I am.”

“I think it’s a prestigious career if one works hard and smart.”

4. Do you think social media is a key part of client/adviser communication? Do you expect this to increase in the future? Why/why not?  

“I don’t see it as a key part of adviser communication as I found social media to lack personal touch, however due to its convenience and widespread audience I do expect it to increase in the future. It’s a good thing for growing a business.”

“Yes, with the increase in social media usage. It’s important to be able to keep in touch with clients through various media channels.”

“Yes! Technology advancement has rapidly been promoted. However, talking face to face is still important.”

[i] The Next Generation of Financial Advisers, EY, 2016.
[ii] ibid
[iii] Zurich, 2016.

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Prepared by Zurich Australia Limited ABN 92 000 010 195 AFSLN 232510. This publication is dated 14 April 2016 and is of general nature and does not take into account any personal objectives, situations or needs. This information is a summary for financial advisers only and there are relevant exclusions and conditions that you should consider before making a decision or recommendation about the product. You should refer to the current Zurich Wealth Protection Product Disclosure Statement (PDS). CLYH-011638-2016

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