- 48 per cent of UK millennials do not receive any information on financial matters through their workplace or educational establishment.
- 42 per cent of UK millennials estimate the size of the fund they will need for retirement by taking a “blind guess” rather than basing it on industry data, with a further 51 per cent taking an “educated guess”.
- 77 per cent want to be told the “stark reality” of their post-retirement finances.
- UK millennials would allocate 40 per cent of their portfolio to social finance products.
- 95 per cent of millennials feel that pension funds and insurers provide limited, poor or no options for investing in social finance products.
- 70 per cent of UK millennials would save more if their pension allowed multiple lifetime withdrawals.
The report offers a number of potential avenues which would allow financial services providers such as life insurers, banks and asset managers to reach out to millennials in new ways:
“The financial services industry needs to do more to promote financial education by partnering with grassroots financial education providers, engaging with schools and universities, and lobbying national governments for change,”
“Young people need regular engagement through multiple channels if they are to be equipped to deal with the challenges they face and provide for their own retirement.”
“Without a new approach, we face a real risk that the millennial generation will become Generation Lost – lost both to the financial services industry and in terms of its own readiness for retirement”.
So what can we do to use new technology and regular engagement to become the adviser of choice for millennials?
Generational advice
Millennials trust their parent’s advice on financial matters above all sources including social media, which is why generational advice should be a key part of any service proposition. If we are engaged in a positive manner with their parents then we have a greater chance of a future relationship with millennials as their lives evolve.
What is Generational Advice?
If an advisory business has done its job properly for a client, then issues such as inheritance tax planning, life and critical illness protection and pension planning will have all been addressed in such a way that the client was happy and willing to have paid a fee for ongoing service and advice.
But what happens when one of life’s eventualities occurs and the client dies? Where does any inheritance go? How aware are any beneficiaries of the advice and service that’s been provided?
Are the beneficiaries your clients and if so, do you have any influence over where the inheritance you’ve helped create or protect will be invested in the future?
