Should young people seek financial advice? A guide for the under-45s

Is financial advice worth it for under-45s? Mouthy Money editor Edmund Greaves explores the pros, cons and gaps

Financial advice has a reputation for being largely inaccessible to young people. But do you even need it with a wealth of financial information available online? Mouthy Money investigates.

In an era of rising living costs, shifting job markets, and economic uncertainty, the question of whether young people – those under 45 – should seek financial advice is more relevant than ever.

For many in the UK, money management is a DIY business, with budgeting apps and online forums stepping in where traditional guidance once stood.

Yet, as financial decisions grow more complex and consequential, the case for getting professional financial advice does grow.

This feature explores what financial advice entails, when it’s worth seeking, its potential drawbacks, and the persistent “advice gap” that leaves many young Brits underserved.

What is financial advice?

Financial advice is a professional service aimed at helping individuals manage their long-term wealth more effectively.

Delivered by qualified, regulated financial advisers, it goes beyond generic tips or casual suggestions from friends.

Advisers assess your personal circumstances such as your income, debts, goals, and risk tolerance and provide tailored recommendations. These might include investment strategies, pension planning, mortgage options, or tax-efficient savings schemes such as ISAs.

In the UK, financial advisers must be regulated by the Financial Conduct Authority (FCA), ensuring they meet strict standards of competence and ethics. If you meet an adviser, they should be listed on the FCA’s register.

Advice can be ‘independent,’ covering the full market, or ‘restricted’, focusing on specific products or providers.

For young people, who may be navigating their first big financial milestones, this bespoke guidance can clarify a maze of options, whether that’s buying a home, starting a business, or planning for retirement decades away.

Mouthy Money spoke to a professional financial planner to get some insights into when a young person might need advice.

Katrania Lowers, a financial planner at Colmore Partners, explains: “Financial advice for young people is often misunderstood as something you only need ‘when you’re older’ or ‘when you’re rich’.

“But the reality is, the earlier you get clarity, the more control you have – especially at key moments like receiving an inheritance, coming into significant income, or starting a business.

“These are important points where the wrong move can be costly, and the right one can set you up for long-term security.”

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When should young people get financial advice?

For many under-45s, financial advice might seem like a luxury reserved for the wealthy or older generations.

Yet, certain life events and circumstances make it not just useful, but essential. Here are some key situations where seeking advice can pay off:

1. Inheritance

Receiving a lump sum, whether from a grandparent’s estate or a family windfall, can be overwhelming.

A 30-year-old inheriting £50,000 might wonder whether to invest it, pay off student loans, or save for a house deposit. But Lowers points out that mistakes are often made by young people who leave it too late to seek advice on inheritance.

Lowers explains: “People often think advice should come after the money lands. But in reality, the most powerful advice happens beforehand – when there’s time to understand the responsibilities that come with wealth, not just when it finally lands in their lap.

“Inheriting assets can be emotionally and financially complex, and without guidance, people risk making poor decisions or missing important planning steps – especially around tax, investing, or preserving family wealth.”

An adviser can map out tax implications (like inheritance tax thresholds) and suggest growth-oriented options, ensuring the money works harder over time.

Lowers adds: “Inheritance is seldom just about the money. It’s about stewardship. If someone doesn’t feel confident or equipped when they become a custodian of family assets, it can lead to stress, guilt, or worse – mismanagement.

“Getting advice early gives young people the language, tools and mindset to make thoughtful choices when the time comes; and having access to the wider family planner, who they already know and trust, means there’s already a sounding board in place when those imminent decisions need to be made.”

2. Business success

Young entrepreneurs are a growing force in the UK, with start-ups thriving in tech, creative industries, and beyond.

A 35-year-old who’s turned a side hustle into a £500,000-a-year business faces unique challenges: managing cash flow, structuring investments, or planning an exit strategy.

Financial advice can help balance personal wealth with business growth, while navigating tax reliefs such as Entrepreneurs’ Relief.

This can also be relevant for someone who isn’t necessarily an entrepreneur, but maybe joined a very successful business at an early stage and received some remuneration in the form of shares in the business.

3. Employment success

High earners – think City bankers, tech professionals, or NHS consultants in their early 40s – often juggle hefty salaries with big responsibilities.

A parent earning over £100,000 can face significant tax hurdles, especially given that marginal tax rates soar above this income level.

They might need advice on maximising pension contributions, mitigating income tax, or diversifying investments beyond a workplace scheme.

4. Other milestones

Life doesn’t wait for middle age. Buying a home, starting a family, or even planning a career break can benefit from expert input.

Financial advice doesn’t just cover investments and pensions. Mortgage advisers and insurance brokers are both services that young people can call on at key moments in their lives.

The former are one of the most popular routes when it comes to finding a mortgage for buying a home.

The latter can provide key help when someone is considering life insurance, income protection and other insurance options.

Lowers agrees with this sentiment: “Advice for young people doesn’t always have to be formal or product-led. Often, it’s about education or even just a safe space to ask ‘basic’ questions.

“For most young people, especially those still building their financial base, the right kind of advice might look more like a gentle steer – helping them understand pensions; why protection is important when they take out a mortgage, start a family or get a job; or how to use their money as a tool rather than something that disappears every month.”

In short, financial advice isn’t just for the grey-haired.

Whenever money gets complicated – or the stakes get high – young people stand to gain from a professional steer.

The drawbacks of financial advice

Despite its benefits, financial advice isn’t a silver bullet, and for many under-45s, it comes with major hurdles that make it less appealing.

Here’s why it might not always fit:

Cost: Advice doesn’t come cheap. Fees can range from £75 to £250 per hour, with comprehensive plans costing £500 to £2,000 upfront.

Ongoing advice might carry a percentage charge – typically 0.5% to 1% of your assets annually.

For a 32-year-old with £20,000 in savings, paying £200 a year might feel disproportionate, especially when free resources exist. However, doing it DIY does come with its own risks as you’ll be making decisions without personalised input from a professional.

Minimum net worth barriers: Many advisers target clients with significant wealth – say, £100,000 in investable assets – leaving younger people with modest portfolios out in the cold.

A 25-year-old with £5,000 in a Stocks and Shares ISA will struggle to find an adviser willing to take them on, as the fees wouldn’t justify the time spent.

This exclusivity can make advice feel elitist, rather than accessible.

Trust and complexity: Some young people hesitate because they don’t trust advisers (memories of mis-selling scandals such as PPI linger) or find the process intimidating.

Others worry about being pushed into products they don’t need, such as costly insurance policies.

And for the digitally savvy, the rise of robo-advisers – cheaper, algorithm-driven alternatives – can seem a more appealing fix than face-to-face meetings.

These drawbacks highlight a tension: while advice can be transformative, its structure often caters to older, wealthier clients, not the cash-strapped or early-career crowd.

The advice gap

This mismatch feeds into a broader issue known as the “advice gap”. This is the divide between those who need financial guidance and those who can access it.

For young people, the gap is stark. A 2023 FCA survey found only 8% of UK adults under 45 had sought regulated financial advice in the past year, compared to 20% of over-55s. Cost, awareness, and a lack of tailored services were cited as key barriers.

The implications are serious. Without advice, young people risk under-saving for retirement (exacerbating the UK’s pension crisis), mismanaging windfalls, or missing out on tax breaks.

Lowers says the real challenge is access: “Many don’t know where to go or assume they can’t afford it – which feeds into the advice gap. If we want to change that, we need to make financial advice or guidance more accessible, more flexible, and more in tune with the reality of someone navigating first-time milestones, not just six-figure portfolios.

“Financial coaching is becoming more and more popular, and I can see why. It offers guidance in which AUM doesn’t matter and the ability to meet minimum initial or ongoing fees isn’t even a consideration – it appeals to the wider population, including younger people. Whilst it isn’t advice, I do believe this will start to bridge some sort of gap.”

The rise of ‘finfluencers’ on TikTok and Instagram – some offering dubious tips – further muddies the waters, filling the void with unregulated noise.

So, what’s being done? The UK Government and regulators are stepping up. The FCA’s 2022 Consumer Duty rules push advisers to prioritise clients’ needs, making services more transparent and outcome focused.

Meanwhile, the Money and Pensions Service (MaPS), a Government-backed body, offers free guidance through Moneyhelper, targeting younger audiences with tools such as pension calculators and debt advice.

Innovations such as ‘simplified advice’ are also growing. In 2024, the FCA proposed lighter-touch models – think low-cost, digital-first advice for basic needs such as ISAs or small investments.

Firms including Wealthify and Nutmeg already offer ‘robo-advice’ at a fraction of traditional upfront fees.

Yet, progress is slow. Closing the gap requires more advisers but the UK has just 28,000, down 10% since 2015.

Better financial education in schools, and a cultural shift to see advice as a young person’s tool, not a retiree’s privilege.

To seek or not to seek?

For young people under 45, financial advice isn’t a one-size-fits-all solution. If you’re navigating a windfall, scaling a business, or earning big, it can be a game-changer, offering clarity and long-term security.

But for those with tighter budgets or simpler needs, the costs and barriers might outweigh the perks – especially when digital tools and free resources abound.

The advice gap remains a sticking point, and while regulators and the Government are chipping away at it, young Brits must weigh their options carefully.

Ultimately, the decision hinges on your circumstances, goals, and willingness to invest in your financial future. In a world of uncertainty, a little expert help might just be the edge you need – or a cost you can skip until the stakes rise higher.

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