MRM - The 'Lost Generation'?


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MRM - The 'Lost Generation'?

  1. 1. The ‘Lost Generation’?
  2. 2. “ 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
  3. 3. We’ve all seen the headlines
  4. 4. ‘ UK faces ‘lost generation’ of pension savers’ ( – 03/06/09) ‘ Pensions crisis looming for young people’ ( – 17/09/07 ) ‘ Young people careless about debt’ ( 05/03/07) ‘ Young adults delay saving for a pension’ (FT 19/12/09)
  5. 5. Is this really a ‘live now, save later’ generation?
  6. 6. 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
  7. 7. To ask what they think, we surveyed 137 young professionals on their attitudes to money between 21 st January and 3 rd February 2010. All respondents were between 20 and 30 with the majority in either their first or second job after graduation.
  8. 8. Of those questioned: 80% have a savings account 32% pay into a pension scheme 20% hold other investments
  9. 9. Rather than being a ‘lost generation’…
  10. 11. In addition, 32% feel in control of their money and like to plan ahead
  11. 12. But where do they turn for advice?
  12. 13. of respondents are unaware of any financial services companies in the UK that actively target young professionals 97%
  13. 14. 52% say family and friends are their biggest source of financial advice, and 28% describe the Internet as their biggest source of advice
  14. 15. In fact, when it comes to seeking advice, 63% put financial advisers on the bottom of the list
  15. 16. So not only are young professionals more responsible with money than they have been portrayed to be
  16. 17. But there is an overriding mistrust of financial services, with this demographic feeling misunderstood and under-represented by the sector
  17. 18. 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
  18. 19. Timing is now crucial if the financial industry is to restore lost trust and build lasting relationships with their future customer base
  19. 20. Dazzling marketing and flashy advertising campaigns won’t make for an easy win here
  20. 21. 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
  21. 22. This group represents a fresh challenge to the financial services industry
  22. 23. Will the industry meet this challenge to create a genuine and sustained relationship with its future customer base?
  23. 24. I In Oscar’s words
  24. 25. “ It is better to have a permanent income than to be fascinating.” The Model Millionaire, 1912
  25. 26.
  26. 27. <ul><li>Slides 1, 26: Sterling coins image, Dave McLear's photostream at </li></ul><ul><li>Slide 2, 24, 25: Oscar Wilde image, DPMS' photostream at </li></ul><ul><li>Slides 3-6: Newspaper image, EssG's photostream at </li></ul><ul><li>Slides 7-9: Exam hall image, jackhynes' photostream at </li></ul><ul><li>Slides 10, 11: Coins image, Lord V's photostream at </li></ul><ul><li>Slides 12-15 : Road-sign image: Splorp's photostream at </li></ul><ul><li>Slides 16-18, 21: Girl at computer image, Chazz Layne's photostream at </li></ul><ul><li>Slide 19: Timer image, Chris Blakeley's photostream at </li></ul><ul><li>Slide 20, 21: Piccadilly Circus image, Alessandro_Morandi 's photostream at </li></ul><ul><li>Slide 23: Question image, Oberazzi's photostream at </li></ul>Sources and acknowledgements