The Zillennial wealth era
As the much discussed ‘great wealth transfer’ edges closer, Gen Z (those born between 1997 and 2012) and how they engage with their wealth future is coming under increasing scrutiny.
This is a generation that is hugely scrutinised, with a general fascination with how they interact with the world, engage with brands, and even the expectations they have of employers. And as they become an increasing force in financial services, there’s also a growing wealth of insight and understanding ready at hand to help shape products and services that meet their needs.
As advisers look to ensure that this generation is properly advised, what are the habits they need to be aware of and how can/ should they mitigate them? For those advisers looking to lock-in longer-term growth for their business, this could be key.
Breaking the mould
As they emerge into adulthood, Gen Z are upending assumptions and norms, forcing a reassessment of what the social and commercial landscape of the future is going to look like.
This cohorts’ approach to health, social and leisure time is, broadly, atypical compared to their older peers. They are much more health conscious, temperant, and their social appetite is more wholesome. Young people now do the 9-5 and then the 5-9 – which could be socialising, gym, side hustle and more – social media has glorified doing above and beyond.
This generation is less connected to national identity, with just 41% saying they are “proud to be British”1 - down from 80% in 2004. Data also reveals that they’re more likely to get married, with 75% of Gen Z wanting to take that step compared to 43% of Millennials want to tie the knot. More are also likely to want to have children too - 69% of Gen Z compared to fewer than two in five (39%) Millennials2.
They are, undoubtedly, a different proposition.
Zillennial finances
This break from the habits of earlier generations is visible too when looking at their approaches to their finances.
When looking in the data, Gen Z are found to be very conscious of the financial hurdles in their way as they look to achieve financial and life goals. Three quarters (75%) believe today’s young adults (16-27) will find it harder to save because of increased house prices and rent. And a similar figure (71%) are of the opinion that their generation face more hurdles to achieving financial wellbeing than older generations faced when they were young.
Just one in five (19%) are not setting themselves long-term financial goals. Notably, each of these are felt more keenly by women more than men3.
In terms of how to reach those goals, they are determinedly engaged - GenZ spend more than an hour each week managing their money while more than two in five (43%) actively seek out financial education resources It is, however, worth noting that this may be partly out of necessity as 42% say they can’t afford financial advice4.
This generation are also shifting the more traditional life milestones, meaning those long-standing protection triggers are coming later in life compared to their parents who likely had the house, marriage, kids a lot earlier.
But also, these trigger points are changing for Gen Z, shifting instead toward their first job, grad schemes, monthly car payments, first car insurance, and taking on the obligation of house or flat rental.
Interestingly, whether it’s millennials or their younger Gen Z counterparts, both are more open to protection than the UK average. This is true of Life Insurance, Critical Illness, Income protection, and Private Medical Insurance too. And it’s overwhelmingly financial advisers that they trust to sell it to them (57% Gen Z and 66% Millennials)5.
Capturing attention
How this cohort - hungry for advice - then takes it on board is crucial. In fact, while growing up in the age of ‘digital-first’ services and AI, that human touch remains more important than ever for them. They are at ease with the use of AI to summarise findings, the crucial expectation is that there remains a human element sitting behind the insight and to at least do the “final advice”.
In terms of what they’re looking for and prioritise in a product or service, authenticity is key. Meaning that companies and advisers need to build relationships, demonstrate trust, and show personality. A paint by numbers approach to advice is a sure-fire way to drive this generation away.
Tangible benefits are also greatly sought after. That might mean better communication about how financial decisions are playing out and giving regular updates on progress along the financial pathway. But it may also mean thinking more creatively around partnerships with other brands - including those beyond financial services such as wellbeing - that enable clients to have access to discounts or services that help build holistic, not just, financial wellbeing.
For advisers looking to shore-up their proposition and approach for this generation, there are plenty of reasons to be optimistic. And while it may require a slight shift in approach, advisers are pushing at an open door when looking to engage with this demographic.
Sources:
1YouGov, What does Gen Z think about Britain? Feb 2025
2Charles Russel Speechlys, ‘Charles Russell Speechlys finds that 3 in 4 Gen Z adults plan on tying the knot as young people embrace traditional life milestones’ Feb 2025
3Opinium, UK25376 -YBS - Financial Resilience tables (Gen Z) Aug 2024
4Opinium, UK25376 -YBS - Financial Resilience tables (Gen Z) Aug 2024
5Opinum, Impact of Life Events on the demand for Protection Insurance (PDF, 2MB)