Young peoples’ perceptions of the financial services industry are acting as a barrier to new talent entering the profession, with just 28 per cent finding a career in the sector appealing, a report from The Lang Cat and Morningstar Wealth has found.

The research came following data from the Financial Conduct Authority (FCA) that showed the number of advisers aged under 25 had fallen below 200 for the first time since 2022.

The report noted that careers in financial services sat low on the list of appealing options for 17 to 23 year olds, with just 28 per cent saying they found a career in the industry appealing, the third lowest proportion of the sectors analysed.

When asked specifically about financial planning, interest dropped further, with just 21 per cent describing the role as appealing.

Despite this, there was enthusiasm for financial education, as while just 17 per cent felt they had received a good level of education about money or personal finance at school, 86 per cent agreed it should be taught.

Furthermore, when asked about what they want from careers, young peoples’ responses aligned with the qualities and skills needed to be a professional adviser, including a wanting a job that interests them (81 per cent), strong salary potential (62 per cent), job security (58 per cent), and roles that help people or society (53 per cent).

The Lang Cat and Morningstar Wealth said that these findings suggested that the lack of appeal may stem less from the role itself and more from a limited understanding of what financial advice actually involves.

Young people frequently likened the role of an adviser to one in accountancy, rarely referring to the emotional or interpersonal aspects of the job and focusing on the need for being ‘good with numbers’.

The prevailing stereotype of an adviser was suited, corporate and formal, predominantly male, and middle-class, with the report warning this perception risked excluding large swathes of potential talent.

“The results are fascinating, though in parts uncomfortable to read – particularly how our sector is perceived by younger people,” commented The Lang Cat insight director, Steve Nelson.

“There’s nothing wrong with accountancy or suits, but what’s striking is the absence of any reference to the creativity, autonomy and human connection that define modern financial advice.

“The belief that maths skills are paramount also risks alienating talented candidates who may not see themselves as ‘numbers people’, despite being ideally suited to the role.
When you consider how purpose-driven and people-focused the profession really is, this perception gap becomes all the more frustrating.

“What also stood out was the perceived lack of diversity, which will inevitably deter many from even considering a career in advice.”

Morningstar Wealth head of distribution, Ben Lester, added: “Financial advice is such a fantastic and rewarding career option, but these findings make it clear that the wider industry and the advice profession need to be far more visible and proactive in engaging with young people – not just to improve financial literacy, but to showcase the breadth of career opportunities available.

“The industry cannot wait for the curriculum to catch up; it must step in to help bridge the gap. By showing the human side of financial advice and broadening perceptions of the skills required, we can attract the new blood our profession urgently needs.”

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