Analysts say Gen Y are sceptical the value of financial advice, because they have a greater ability to find information for themselves.

A report released by KPMG found that there is some nuance to Gen Y’s stance on advice.

They feel that they do not need a traditional financial advisor, but are happy to receive some form of financial coaching and guidance according, KPMG says.

The report –Banking on the Future – saw KPMG survey 1,400 of its own Gen Y employees.

Eighty-four per cent stated they did not need financial advice, 95 per cent did not have a financial planner, and 65 per cent were interested in financial coaching but were reluctant to pay for it.

“There is a healthy scepticism of among the respondents around the value of advice they can get from a financial adviser. They are asking ‘what can this individual tell me I can’t find out myself?’” KPMG Partner and Head of Financial Services Consulting Daniel Knoll told industry press MoneyManagement.

“There was also a trend towards more collaborative financial planning models and the move away from ‘set and forget’ delegated planning models where money is given to a planner and set some parameters and hope for a return.”

“What we are seeing coming to fore is a validating model around financial planning with the participant and the planner are more regularly involved and validating one another’s perspective on the planning journey.”

Knoll said the lack of engagement with financial planning advice probably comes from the reputational issues in the wake of recent events, such as Australia’s big banks admitting to ripping off their customers.

Gen Y is confused about when they should enter the money game, and what is an appropriate amount to invest.

“There is a scale challenge and these people don’t know when to enter the wealth arena while the notion of paying hundreds of dollars to invest a couple of thousand dollars did not seem a like a great return on investment,” Knoll said.