Millennials need advice

This explosion is explained, because many of them are entering a new phase of life. Many have started a family, bought a house or reached leadership positions.

However, it is important to put this growth in context. Millennials are thus much poorer than their predecessors. According to National Bureau of Economic Researchthe average (inflation-adjusted) net worth of 35- to 44-year-olds in 2019 was 19% lower than that of the same age group in 1989.

It must be said that a large part of millennials entered the labor market during the Great Recession. They have also been through the recession due to the pandemic, not to mention inflation and the current bear market. And many have gone through this having to pay off their student loans.

This has caused members of this generation to have little confidence in their finances. According to a recent survey of the insurance company Prudential Financial62% of millennials say they worry about their money on a daily basis – more than any other age group, including younger Gen Z.

For advisors, millennials therefore represent a clientele whose wealth and self-confidence are historically low, but whose potential is enormous and growing. In addition, the latter say they are eager for financial advice and are ready to pay for it.

59% of millennials, more than any other generation surveyed, describe themselves as “advice seekers,” meaning they’re willing to hire an advisor, Cerulli’s study reports. Only 6%, the lowest percentage of all age groups, reported being “self-sufficient”.

To help advisors approach them better, Cerulli asked this generation what criteria are most important to them when it comes to choosing an advisor. Almost half (48%) spoke of “transparency in interactions”. Another 45% said it was crucial that an advisor “take the time to understand their needs, goals and risk tolerance”.

Another important point: technology. Thus, 33% believe that it is important for their adviser to “integrate cutting-edge technology into their practice”. Finally, millennials prefer to receive all their financial services in a single “one-stop-shop” company and favor a flexible method of payment.

With that in mind, there is still a need to attract this generation. To do this, advisers would do well to offer their current clients family reunions, or to involve the children in the meetings they have.

Now that you have all the information in hand, what are you waiting for?

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