Recent evidence points to a growing number of younger people who are interested in investing and saving, a shift seen during the coronavirus pandemic.

However, it is concerning that many are seeking and finding advice via unregulated sources, which can have serious consequences for their financial security.

A recent survey in Denmark found this to be the case, which suggests this is not confined solely to the UK.

Insurance and Pension Denmark CEO, Kent Damsgaard stated, “I am concerned that young people will completely opt out of the classic labour market pensions in order to invest and save up for old age, and in that way, miss out on the insurance policies that are typically associated with occupational pension products.

“It can have major consequences for their financial security and the common safety net that has been built up over centuries. As an industry, we therefore have a very special responsibility to now look at how we can better reach young people,”

During lockdown, a number of new digital communities have emerged. While it is positive that younger people are interested in saving and taking responsibility for their finances, the way in which they are doing this may have a significant knock-on effect.

There is a gradual move away from professional financial advisers to digital communities with influencers on many social media platforms, which gives cause for concern.

Obtaining information in an unregulated world is fine if that is all it is – information. If an individual then acts on this without any form of fact checking, the consequences could be severe.

Independent financial advice exists to provide information and guidance, enabling people to understand their finances and help them make informed decisions in a regulated (i.e. protected) environment.

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