- 8 in 10 financial advisors say recommendations from friends and family have most influence on younger adults seeking financial advice
- Top 3 Reasons People Seek Financial Advice Revealed, with Guidance On Pensions & Investments Topping The List
- “Resorting to social media information and reviews when choosing a financial advisor could run the risk of people falling prey to fraudsters”
Social media has the second biggest influence on young people when they are choosing financial advisors.
This is according to the findings of a new survey of 215 financial advisors nationwide, undertaken by leading pension trustees, Independent Trustee Company (ITC).
When asked what, in their experience, they believe most influences younger adults when choosing a financial advisor:
- Eight in ten (80%) financial advisors surveyed cited recommendations from friends, family and colleagues, suggesting these people have the biggest influence on younger adults seeking financial advice (see Table 1 in Appendix).
- Four in ten (40%) advisors cited social media information or reviews, meaning that social media is deemed by advisors to have the second biggest influence on young people in this regard.
- Almost one in four (24%) cited media-driven brand awareness.
- Only 6% of advisors cited suggestions from banks or credit unions as having most influence over young people while 3% cited recommendations from investment companies
Commenting on the survey findings, Glenn Gaughran, head of business development of the Independent Trustee Company said:
“While it’s reassuring that our survey found that younger adults for the most part turn to friends, family and colleagues when seeking a financial advisor, it’s hugely concerning that social media has emerged as having the second biggest influence on them when they’re seeking financial advice.
Given how deeply ingrained social media is in young people’s lives, it’s perhaps natural that they might resort to social media when seeking recommendations on financial advisors. However, social media is often a breeding ground for misinformation, false advertisements and fraud. There has been a notable increase of late in the number of ‘pop-up’ social media adverts featuring fake, AI-generated endorsements from well-regarded and trusted celebrities[1]. Crypto scams are common on social media. Unfortunately, there has been an increase in the number of highly-convincing investment scams, with Gardaí recording a 20% increase in reports of investment fraud in 2025 compared to 2024[2]. As these scams can be difficult to recognise as fake, an increasing number of people are falling victim to them, with individual losses arising from the bigger investment scams starting anywhere from €10,000 and increasing significantly beyond this[3].
The importance of impartial financial advice from a qualified and regulated advisor cannot be underestimated when it comes to making major decisions about money. Everyone should explore the correct avenues and get recommendations from trusted sources when seeking a financial advisor. Resorting to social media information and reviews when choosing a financial advisor could run the risk of people falling prey to fraudsters.”
Top 3 Reasons People Seek Financial Advice
The survey also asked financial advisors what in their experience is the initial reason that people first seek financial advice.
According to the survey, the top reasons people first engage with financial advisors are for:
- Guidance on pensions and investments, with almost half (45%) of respondents citing this to be the case (see Table 2 in Appendix)
- Advice on mortgages, with almost one in three (32%) of advisors citing this as the top reason
- Advice when seeking protection – such as on life, serious illness or income protection insurance, with almost one in five (17%) respondents citing this.
The least likely reasons people would initially reach out to financial advisors are for advice on inheritance or estate planning (cited by 4% of respondents), legal or financial issues (1%), or debt (1%).
Commenting on this aspect of the survey, Mr Gaughran said:
“When making any major financial decision or commitment, getting the right financial advice can be the difference between that decision being the best – or worst – one you ever make. Regardless of the reason behind an individual’s need for financial advice, the right advisor will have your best interests at heart and will put you on the right financial path.
However, it’s hugely important that people do their research when choosing a financial advisor and know how best to go about selecting one.
The best and most proven route is to seek a referral from someone you trust --someone that has dealt with the same advisor for some time and trusts their judgement.
Before selecting a financial advisor, you can ask how much they will charge, and whether they charge fees or commission. Be sure that the financial advisor has a recognised professional qualification to give financial advice and it’s crucial that you ensure the advisor is regulated by the Central Bank of Ireland. The Central Bank has a register of regulated firms on its website[4] which you can check easily.
Following all these rules of thumb will ultimately help you find the financial advisor who will steer you towards the best possible financial decisions and outcomes.”
Footnotes
[4] https://registers.centralbank.ie
