mrm - the 'lost generation'?

The ‘Lost Generation’? www.mrm-london.com

“When I was young I thought that money was the most important thing in life; Now that I am old I know that it is.”

Oscar Wilde, The Picture of Dorian Gray

We’ve all seen the headlines

‘UK faces ‘lost generation’ of pension savers’ (Myfinances.co.uk – 03/06/09)

‘Pensions crisis looming for young people’ (Dailymail.co.uk – 17/09/07)

‘Young people careless about debt’ (Moneynews.co.uk 05/03/07)

‘Young adults delay saving for a pension’ (FT 19/12/09)

Is this really a ‘live now, save later’ generation?

We’ve heard of the ‘NEETs’, the ‘Boomerang generation’, even the ‘Yuckies’, but relatively little about another group - young professionals in their first or second job at a crucial stage in laying foundations for their financial future

To ask what they think, we surveyed 137 young professionals on their attitudes to money between 21st January and 3rd February 2010. All respondents were between 20 and 30 with the majority in either their first or second job after graduation.

Of those questioned:

80% have a savings account

32% pay into a pension scheme

20% hold other investments

Rather than being a ‘lost generation’…

In addition,

32% feel in control of their money and like to plan ahead

But where do they turn for advice?

of respondents are unaware of any financial services companies in the UK that actively target young professionals

97%

52% say

family and friends are their biggest source of financial

advice, and 28% describe the Internet as their biggest source of advice

In fact, when it comes to seeking advice,

63% put financial

advisers on the bottom of the list

So not only are young professionals more responsible with money than they have been portrayed to be

But there is an overriding mistrust of financial services, with this demographic feeling misunderstood and under-represented by the sector

The fact that half of all respondents describe themselves as ‘actively more vigilant’ with their personal finances as a result of the financial crisis is testament to this

Timing is now crucial if the financial industry is to restore lost trust and build lasting relationships with their future customer base

Dazzling marketing and flashy advertising campaigns won’t make for an easy win here

Our findings show that the biggest influencing factor when choosing one financial services company over another is the tailoring of a company’s offering to individual needs

This group represents a fresh challenge to the financial services industry

Will the industry meet this challenge to create a genuine and sustained relationship with its future customer base?

I In Oscar’s words

“It is better to have a permanent income than to be fascinating.”

The Model Millionaire, 1912

www.twitter.com/Sarah_MRM

www.mrm-london.com

• Slides 1, 26: Sterling coins image, Dave McLear's photostream at flickr.com • Slide 2, 24, 25: Oscar Wilde image, DPMS' photostream at flickr.com • Slides 3-6: Newspaper image, EssG's photostream at flickr.com • Slides 7-9: Exam hall image, jackhynes' photostream at flickr.com • Slides 10, 11: Coins image, Lord V's photostream at flickr.com • Slides 12-15: Road-sign image: Splorp's photostream at Flickr.com • Slides 16-18, 21: Girl at computer image, Chazz Layne's photostream at flickr.com • Slide 19: Timer image, Chris Blakeley's photostream at flickr.com• Slide 20, 21: Piccadilly Circus image, Alessandro_Morandi 's photostream at flickr.com • Slide 23: Question image, Oberazzi's photostream at flickr.com

Sources and acknowledgements