Advisers doing well to keep Gen Ys happy
Gen Ys are the happiest age group when it comes to financial adviser satisfaction, according to a financial advice satisfaction index.
Lifeplan Funds Management's survey found the cohort under 30 reacted positively to the three drivers of advocacy — performance, trust and reliability, and technical ability.
Past surveys found a link between these drivers and an investor's age where the older the investor, the more likely they were to be satisfied with their adviser. However, the past two surveys found young investors, lower net wealth investors, and investors with less than $50,000 rapidly increasing their perceptions, Lifeplan general manager specialist products, Matt Walsh said.
"In light of favourable capital market conditions for equities and property over the past six months, investors with a bias towards risk have benefited and this may explain an increase," he said.
Walsh also noted that as yields have decreased in term deposits and other annuities it could explain the 60-plus age group's drop in advocacy of their advisers.
Relating to this, the survey found that investors with the highest net wealth recorded a decrease in perceptions for technical abilities, and trust and reliability.
Walsh said the most dissatisfied investors were aged 45 to 60 adding that advisers are most concentrated on this group to grow their business and they need to do more to keep them happy.
"Gen X and Gen Y will eventually be the recipients of huge levels of intergenerational wealth transfer, so ensuring advisers provide these investors with good advice now, will stand them in good stead when these younger clients have even larger amounts to invest."
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