A new report has revealed exactly how the different generations view financial advice and saving for home loans.
The cross-generational research by ING looked closely at how each age group planned for the future and what the most important financial considerations were.
The research showed that Gen Y (24 to 28 y/o) and Gen Z (16 – 23 y/o) ranked home ownership as one of the most important longer-term goals.
‘Saving for a home’ was in their top five concerns, as well as paying for a mortgage, whereas baby boomers (54 to 64 y/o) had neither of these as concerns.
According to the data, home ownership was more of a priority for the future for the youngest generation than saving for a car, affording children or saving for university/education fees.
In fact, nearly 50% of Gen Z’s said they were most worried about saving for a home at this moment in time.
The research also looked at how the generations would rather receive advice or help with financial decisions.
At least 60% of Australians across all generations preferred face-to-face advice, however younger generations were more open to receiving digital advice. The younger two generations were also happier to pay for advice.
Melanie Evans, ING's head of retail banking, said, "When you seek help from a broker or adviser you’re usually preparing yourself to make a life changing decision. It’s clear from the research that Aussies want to speak to someone they can trust and who can help tailor and rationalise a financial plan for them. Tech solutions generally only solve part of the challenge and often take a cookie-cutter approach."
When it came to seeking the advice of a broker, the data showed the older the generation the least likely they were to go to one.
Gen Z was more likely to speak to a broker than use comparison sites. However, all age groups were more likely to speak to family members, friends or financial advisers.
The older two generations were found more likely to use a finance professional generally to stay on top of their finances. The younger Gen Zs and Gen Ys were found instead to be prompted by a desire to buy property.
Evans said, "It’s important not to discount the younger generations, there’s a real risk that they may fall through the cracks if advisers ignore these segments simply because they don’t understand them or their business model doesn’t fit their needs. They need help getting the foundations in place, saving/ budgeting, cash flow management. If they get this right its likely they will have a client for life."