Are IFAs too far on the left of the risk curve for Gen Z

Gen Z approaches investing differently, prioritising technology, social trends, and ethical considerations over traditional portfolio structuring. Many are drawn to high-growth sectors like AI, e-sports, and tech, with some keen on meme stocks for their cultural appeal. While this enthusiasm is great, managing expectations around risk is key. As advisers, education is our biggest tool – helping them balance high-growth potential with long-term stability. The rise in Gen Z seeking financial advice aligns with our experience, but traditional IFAs must adapt. Engaging through digital platforms, clear communication, and a blend of traditional and on-trend investing is crucial to building trust.

The rise of meme stocks is perhaps the clearest example of how Gen Z’s approach to investing has been bastardised by a get-rich-quick mentality fueled by social media, where the promise of overnight success often overshadows the fundamentals of sound financial strategy. In fact, generating consistent, risk-adjusted returns remains entirely achievable, yet too many young investors remain fixated on the allure of high-stakes, high-reward opportunities that often fail to deliver over the long term. This has resulted in many investment advisers embracing the distorted preferences of Gen Z, utilising a sleek mobile app and gamified features that allow younger investors to track and instantly share their portfolios for digital bragging rights. What was once considered a private matter for previous generations, who rarely discussed their pension savings even within their own families, has now evolved into a highly social experience, largely for the worse. Focus on steady returns, not likes.