What the next generation of clients expects from their adviser

The great wealth transfer is underway. According to the Productivity Commission, Australians aged 60 and over are poised to transfer $3.5 trillion in wealth to younger generations over the next two decades, averaging $175 billion annually. For advice practices, this represents both an unprecedented opportunity and a significant challenge: the clients inheriting this wealth have fundamentally different expectations from those who accumulated it.

Understanding what drives younger clients is no longer optional for practices looking to remain relevant. Research from ASIC’s Moneysmart found that 77 per cent of Gen Z plan to set financial goals for 2025, compared to just 35 per cent of Baby Boomers. This generation is actively engaged with their finances, but they approach money management in ways that may be unfamiliar to advisers accustomed to serving older demographics.

Purpose before product

Perhaps the most significant shift in client expectations is the demand for values alignment. The Responsible Investment Association Australasia (RIAA) found that 88 per cent of Australians now expect their investments to be responsible and ethical, up from 83 per cent in 2022. Among younger cohorts, this expectation is even more pronounced, with Gen Z and Millennials leading demand for responsible investing options.

This goes beyond simply offering an ethical fund option. According to IFA, younger clients are purpose-driven and value understanding the “why” behind their financial decisions as much as the “what.” They want to know how their investments align with their broader values around environmental sustainability, social responsibility, and corporate governance. Advisers who can articulate these connections will find stronger engagement with next-generation clients.

Digital as default

Younger clients have grown up with seamless digital experiences across every aspect of their lives. They expect the same from their financial adviser. According to Colonial First State, clients increasingly expect advisers to provide intuitive, engaging technology solutions comparable to those they use for banking, shopping and social media.

This extends to how advice is delivered. Many younger clients prefer what has been described as “bite-sized” advice: information delivered in smaller, digestible chunks rather than comprehensive documents. Money Management reports that practices hesitant to adopt new technologies risk becoming increasingly irrelevant to younger clients who prioritise digital interaction.

The research from Netwealth’s Advisable Australian study found that about one in three advised clients consider themselves early adopters who are always among the first to try new technologies. This tech-savvy cohort expects client portals, digital document signing, video meetings and real-time access to their financial information.

Communication that connects

The days of annual reviews as the primary touchpoint are over. Modern clients expect more frequent, meaningful interactions with their adviser. Research from YCharts found that nearly 80 per cent of clients prefer contact at least every three months, while 47 per cent of clients with $500,000 or more in assets want monthly communication.

Critically, this communication must be relevant and personalised. Assured Support notes that clients increasingly expect personalised financial plans and transparent communication, valuing tailored strategies based on life stages and goals over traditional asset-based segmentation. The “set it and forget it” model of advice has been replaced by a need for consistent engagement.

This is where your broader team becomes essential. Client service managers, paraplanners and support staff all play a role in maintaining these relationships. A well-trained team that can handle routine queries, provide updates and escalate appropriately creates the touchpoint frequency younger clients expect without overwhelming adviser capacity.

Transparency on fees

Younger generations have grown up with unprecedented access to information and price comparison. They expect the same transparency from their financial adviser. According to Netwealth, 66 per cent of advised clients prefer to pay a flat fee for advice, while 26 per cent prefer a percentage-based fee-for-service model.

Beyond fee structure, next-generation clients want to understand what they are paying for. They are comfortable discussing money and expect clear articulation of the value being delivered. NAB research shows Gen Z has become the most financially confident generation, with nearly a third feeling comfortable discussing their finances openly. Practices that can clearly demonstrate return on investment in their services will resonate with this audience.

The human element remains

Despite all the emphasis on technology and digital delivery, the human connection remains central to advice relationships. According to Vanguard research, 71 per cent of human-advised clients reported an increase in positive emotions such as confidence and security, compared to 47 per cent for those receiving purely digital advice.

The key is finding the right balance. Younger clients want technology that makes interactions efficient and convenient, but they still value human guidance for significant decisions. They expect their adviser to know them personally, understand their goals and provide advice that feels relevant to their life stage.

For practices preparing for the wealth transfer, the message is clear: evolving your service model is not about abandoning what works, but about expanding how you deliver value. The next generation of clients brings new expectations around technology, communication, values alignment, and transparency. Those practices that can adapt while maintaining the human connection at the heart of advice will be best positioned to serve clients for decades to come.

James Dunn

James is an experienced senior journalist and editor of The Inside Network's publications.