Just over half of 16-34-year olds have savings, and only 12% have investments (workplace pensions aside), far below other age groups, according to advisory firm Platforum.

This statistic shows that few from the younger or millennial generations are investing.

Platforum’s Ross Langbridge gives some reasons for this.

“Young people are far less familiar with most of the established brands in our sector. For example, while Hargreaves Lansdown has a strong recognition across the population as a whole, this shrivels among younger people. Newer brands, like Nutmeg, are building their brand recognition levels much faster with young people.

“Banks are also well placed – often they are the only financial services relationship young people have ever had. Banks have higher brand awareness levels than pure investment brands although buying directly from product providers also resonates. Vanguard is currently doing particularly well in this segment.”

“If you’re in your 30s and considering the need for financial advice of some kind, you’d be forgiven for wanting it to be tailored to your particular life stage.”

It is not just a question of financial institutions perhaps “not doing enough” to attract younger investors, but also financial advisers.

Richard Wazacz CEO of Octopus Wealth says “empathy” is key when trying to attract younger investors.

“If you’re in your 30s and considering the need for financial advice of some kind, you’d be forgiven for wanting it to be tailored to your particular life stage. While retirement should form part of any client’s financial planning, regardless of their age, clients who are still thirty years away from hanging up their boots will no doubt feel they have some more immediate concerns to cater for: raising their young family, thinking about their children’s education, or caring for their older family members.

“Research from Deloitte has shown that 82% of millennials would even appreciate more personal meetings with their investment adviser. Instead it’s about using technology to create a compelling, engaging and easy-to-use experience that complements and strengthens the traditional personal relationship,” Wazacz adds.

What do younger investors want?

Octopus Wealth’s Wazacz says going forward millennials will want new levels of transparency from financial providers rejecting jargon and opacity around fees.

Wazacz concludes: “While positive recommendation has always been a hugely important purchase consideration, it’ll only become more so thanks to the proliferation of online reviews that make getting under the bonnet of a potential provider easier than ever before. This generation will also want a service that’s delivered on their terms. Whether that’s a quick phone call or web ex between meetings or after the kids have gone to bed, or simply a way to keep on top their own portfolio as and when they like.”

Platforum’s Ross Langbridge says: “There is an opportunity for investing companies to be successful with younger people, but it requires patience. Customer acquisition costs remain high and, with smaller portfolios, will take more time to recoup. However, investment brands have little choice in this matter – they must replace older clients as they spend or pass on their wealth and the behaviour of the next generation might be fundamentally different to the previous one.”