Around 230k under 35s have net assets above £100k – & majority keen to support good causes
Melanie May | 5 August 2024 | News
Pro Bono Economics (PBE) research estimates that there are around 230,000 people under 35 in the UK with net financial assets exceeding £100,000, with the majority keen to contribute to good causes. However, many are not receiving advice on how best to invest their money, it found.
According to PBE, 88% of wealthy young people already donate to charity with its research finding that 90% of those surveyed expressed a strong desire to have a positive societal impact with their money. Yet roughly 110,000 of those surveyed may not be in contact with a financial or wealth adviser.
38% donated more than £2,000 to charity last year, compared to 5% of over-55s, and despite the difficult economic climate, 63% of those surveyed said they would consider increasing their charitable donations, compared to 13% of over-55s.
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The under 35s are also more likely to seek financial advice at 78% compared to 61% of those over 55, PBE found, and more than half of wealthy under-35s also indicated they would be more likely to choose a financial adviser who offers philanthropy advice.
PBE highlights Donor Advised Funds, which can be funded through cash, shares or third-party entities, as one opportunity. It found that 65% of under 35s said they would be interested in investing in a DAF in the future.
The findings are revealed in a new report, Generous Generation: the business case for financial advisors supporting the under-35s with philanthropy. PBE has also brought together the Financial Conduct Authority, the Treasury, and the Department of Culture Media and Sport, as well as an alliance of accredited bodies, government entities, and philanthropy experts, to enhance philanthropy training for advisers.
Nicole Sykes, Director of Policy and Communications at Pro Bono Economics and co-author of the report with Anoushka Kenley, said:
“This is an opportune moment for financial advisers with the Great Wealth Transfer, and the time to act is now. By championing philanthropy, advisers can ensure they remain relevant and tap into the significant good will of the generous generation.
“Firms and advisers that do not currently offer philanthropy services or limit their philanthropy offerings to the ultra-wealthy risk being left behind by demographics, demand, and by governmental action. But by evolving and embracing this challenge they can attract the next generation of clients in a competitive market and contribute to a more giving, socially-conscious society.”
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.