European millennials’ appetite for riskier investments in the current volatile market ranks higher than older age groups – EY Global Wealth Research Report

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Appetite for advice grows

Amid prolonged economic uncertainty, demand for professional advice to interpret economic, market and political shocks is currently heightened for many investors. However, European demand lags the global average. The survey found that 38% of European millennials and 34% of boomers are actively seeking advice from their financial advisor in response to political instability or uncertainty, compared to 42% and 33% respectively at a global level.

The survey also found that more than half (51%) of European millennials regularly seek additional independent financial advice in response to portfolio volatility, compared to 58% within this age group globally.

In terms of the preferred channels to receive advice, 47% of all European investors look to speak to advisors virtually, 30% opt for face-to-face interaction, and 23% look to the internet or apps. This has changed since the previous EY Global Wealth Research Report in 2021, which found that 14% of European private wealth clients preferred virtual advice, 33% preferred face-to-face interaction, and 18% looked to the internet or apps.

Millennial investors are making the switch

The report also found that the appetite to switch or move money from one provider to another is highest within the younger investor age brackets. Millennials in European markets were found to be more than twice as likely to switch, add a new provider, or move money (71%) than baby boomers (32%). This is similar globally, where 73% of millennial investors plan to switch, add a new provider, or move money from their current wealth management provider over the next three years, compared to 29% of baby boomers.

Investment in newer asset classes – such as FinTech, digital and crypto – is on the rise, and European private wealth clients are looking to the FinTech and alternatives market. The demand for professional advice for these asset classes is also higher than in traditional areas, and investor engagement with FinTechs is expected to rise 12% in the next three years.

Valerie Nott, EY EMEIA Wealth and Asset Management Partner, concludes: “The growth in the alternatives market is significant, as many millennial investors look to actively manage their accumulating wealth. It is essential that wealth managers have the skills to offer advice across emerging as well as traditional asset classes. With many clients actively looking to diversify their portfolios and switch providers, the most agile and digitally enabled wealth managers will most likely see commercial success in a competitive environment.”

ENDS

Notes to editors

Methodology

The EY organization worked with Savanta to conduct a broad survey of more than 2,600 wealth management clients in 27 geographies to understand what they value most in their wealth management relationships across service models, engagement choices and value-aligned advice.

The EY organization profiled clients not just by traditional segments, such as age, gender, wealth and country of residence, but also by risk appetite, life stages, profession, sexual orientation, race and ethnicity and psychographic profiles. The EY organization also asked respondents to rate their knowledge in managing their finances and divided them into low, average and high categories depending on their knowledge of common and complex financial products.

Geographic coverage: North America including the US and Canada; Latin America including Mexico, Argentina, Brazil and Chile; EMEA including France, Germany, Italy, Luxembourg, Netherlands, Switzerland, and UK; Nordics including Denmark, Finland, Norway and Sweden; Middle East including Saudi Arabia, Qatar and UAE; Asia-Pacific including Australia, China, Hong Kong SAR, India, Japan, Republic of Korea and Singapore.