When Do Gen Z, Gen X, and Millennial Investors Seek Financial Advice?
Good to Know
“Advisors may need to connect to younger prospects on social media and tailor services to such life events as marriage, buying a home or starting a family, according to a recent survey…” according to a recent article published by Financial Advisor IQ.
The article was based on a survey of 1,000 investors with investment assets of $500,000 or more that were currently working with a financial advisor, seeking a financial advisor, or changing their Financial Advisor. The differences in motivations for seeking financial advice differ dramatically by age. Note that the age cohorts used in the article are only an approximate match for the commonly accepted age ranges for Gen Z, Gen X, and Millennial generations.
Under Age 35
- More than 4 of every 10 survey respondents cited a life event as their motivation for seeking financial advice.
- Life events include getting married, starting a family, buying a home, saving for college, and receiving an inheritance.
- Interestingly, members of this age cohort used social media, online searches, and referrals from friends to inform their search for a financial advisor.
Age 35 - 44
- Even more of the respondents (greater than 5 of every 10) cited a life event as the trigger for seeking financial advice.
- Interestingly, most of these respondents with an existing financial advisory relationship changed advisors in favor of one with more experience and expertise in the specific life event that concerned them the most.
- Members of this age cohort also used social media, online searches, and referrals from friends to inform their search for a new or replacement financial advisor.
Noteworthy
- Millennial and Gen Z survey respondents showed a preference for working with advisors experienced in providing financial advice to BIPOC (Black, Indigenous, People of Color), Women, LBGTQ+, and Latino constituencies.
- Clients age 55 or more tended to switch financial advisors when their existing financial advisor retired.
- Clients age 65 or more did not generally use social media to search for a financial advisor.
The Bottom Line
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