UK millennial investors tighten control of finances amid market volatility

• 51% of UK millennials are concerned about investment returns amid current market volatility, compared to 47% of Gen X and only 28% of baby boomers 
• 61% of UK millennials are exercising more control over their investment portfolio in response to market fluctuations, compared to 42% of Gen X and only 25% of boomers
• In response to increasing geopolitical uncertainty, 39% of UK millennials are seeking out inflation-protected assets, compared to 28% of Gen X and just 19% of baby boomers

UK millennial investors (those born between 1981-96) are expected to more proactively manage their finances amid ongoing market volatility and geopolitical uncertainty than older generations, according to EY’s latest Global Wealth Research Report.

The research, which surveyed nearly 3,600 wealth management clients globally, including over 300 from the UK, finds that over half of UK millennials (51%) are worried about their investment returns in the current climate, compared to 47% of UK Gen X investors and only 28% of UK baby boomers (those born between 1965-80 and 1946-1964 respectively). 

In response to current market fluctuations, 62% of millennial investors and 61% of Gen X are more likely to seek financial advice, compared to only 29% of baby boomers. In addition, 61% of UK millennials are exercising greater control over their investment portfolios, compared to 42% of Gen X and only a quarter (25%) of baby boomers; with 39% of millennials actively seeking inflation-protected assets, compared to 28% of Gen X and just 19% of boomers.

Baby Boomers find inheritance planning increasingly complex, with many unprepared  

Almost a quarter (22%) of UK baby boomers find inheritance planning more complex than a couple of years ago, compared to 11% of Gen X and 10% millennial investors, with many unprepared; 14% of UK baby boomers ‘not prepared at all’ for wealth transfers, compared to 4% of Gen X and 7% of millennial investors.

There are also gender differences when it comes to estate and retirement planning. Forty-nine per cent of female investors in the UK say they find it ‘extremely important’ to speak to an adviser on the transition of their estate compared to just 21% of male investors. Additionally, 47% of UK female investors feel it ‘extremely important’ to speak to an adviser on preparing for retirement compared to 36% of male investors. 

Roopalee Dave, UK Wealth Leader at EY, comments: “The current macroeconomic and geopolitical environment continues to impact markets and challenge investment portfolios, but not all UK investors are responding the same way. While some investors remain largely unconcerned – taking the view that their investments are well-allocated and change is not required - others, particularly in the younger age brackets, are concerned and want to more actively seek advice to manage their investments. 

“The research also highlights other age group differences - baby boomers in particular find issues such as inheritance planning increasingly complex, and a worrying number are unprepared to transfer their wealth. It’s important for all investors, whatever their age, to carefully consider their circumstances and seek financial advice if necessary to ensure they’re planning for their and their families’ futures effectively.” 

Millennial investors more likely to switch or move provider

The survey also found that investors’ appetite to switch or move money from one provider to another is highest within the younger age brackets. The data shows that 53% of UK millennial investors are currently more likely to switch within the next three years compared to 28% of Gen X and 14% of Baby Boomer investors.

Diversifying into alternative investments a growing trend among younger investors 

Investment diversification is another key trend identified by the survey data, particularly among younger investors, with a third (33%) of UK millennial and 36% of Gen X investors looking to diversify into alternative assets. This compares to 15% of baby boomers. In addition, almost half (49%) of UK millennials and 27% of Gen X investors plan to include digital assets such as cryptocurrencies in their portfolios over, compared to 8% of baby boomers. 

AI continues to grow but human advice still sought

The role of AI in wealth management continues to evolve, and over half (56%) of all UK survey respondents said they now expect financial advisors to use AI to help manage their finances. However, while trust in AI is growing, only 32% of UK investors say they trust AI as much as human advisers, whereas 38% trust AI less than human advisors, raising concerns around data privacy in particular. Distrust is higher among the baby boomer generation, with 34% distrusting AI tools, compared to 14% of Gen X and 3% of millennial investors.

Investor concerns focused on tax changes, economic stability and inflation 

The top three concerns investors have cited currently centre around regulation and tax policy changes (56%), economic stability (54%) and inflation (49%). Female investors are especially concerned about regulatory and policy changes - 65% compared to 53% of male investors - as are those from the baby boomer generation – 59% compared to 58% Gen X and 52% of millennial investors.

Daniel Hall, UK Wealth and Asset Manager Leader at EY, concludes: “While AI is an increasingly integral part of wealth management, it’s clear that customers still value – and crucially expect – human input to advice. AI has the power to transform financial advice and benefit investors, so firms must very carefully navigate how they bring the new technology in whilst maintaining human input, and customer trust.

“Investor needs are more diverse than ever, and younger investors especially are looking at alternative investments as a way of spreading portfolio risk. As the financial landscape continues to shift, and digital assets such as cryptocurrencies become increasingly popular, it is vital that wealth managers have the requisite skills in all asset classes – traditional and the newer digital ones – to be able to offer tailored advice.”

Notes to editors:

EY conducted a survey of nearly 3,600 wealth management clients in 30 geographies, with market research consultancy Savanta, to understand what they value most in their wealth management relationships across service models, engagement choices and value-aligned advice. The survey was carried out between 30 October and 24 December 2024.

To provide deeper insight, EY went beyond traditional demographic segmentation (age, gender, wealth tier, geography) and incorporated behavioural and psychographic profiling. This included factors such as discretionary management style, perceived shifts in investment complexity, preparedness to meet financial goals, and other key factors. 

Geographic coverage: North America including the US and Canada; Latin America including Brazil, Chile and Mexico; EMEA including France, Germany, Italy, Luxembourg, Netherlands, Switzerland, and UK; Nordics including Denmark, Norway and Sweden, Middle East including Qatar, Saudi Arabia and UAE; Asia-Pacific including Australia, China, Hong Kong SAR, India, Japan, Republic of Korea, Singapore and ASEAN including Indonesia, Malaysia, Philippines, Thailand and Vietnam.