IFAs need to tell their clients to keep an eye on their credit files in light of the escalating problem of student debt, as it could affect their ability to borrow money until well into their 30s.
Richard Brown, chief executive of Moneynet, says large student debts will cause problems when arranging a mortgage or anything else requiring a sound credit history because they will take longer to pay off. “IFAs will need to re-address the financial landscape," says Brown. "Their traditional client base will have less money during their twenties and early thirties to put into pensions, investments and savings. But, there will always be a market for IFAs, as graduates will still tend to get married, buy a home and have children and therefore need products like life insurance, income pro...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes