They’ll soon be two-fifths of consumers, so financial advisers must learn to see the world their way
In today’s world things change fast, and it can be hard to keep up with new trends and the opportunities they bring, especially in the rather traditional world of financial services. Wealth managers and advisers must adapt to how younger generations view the world in order to stay relevant – take note that Generation Z are about to overtake Millennials in number, representing 40% of consumers by 2020 (according to MNI Targeted Media research).
Attitudes to investing have changed. When asked how they would invest a $10,000 gift, a third of Baby Boomers said they would pay off debt – a figure that fell to 25% for Generation X and 22% for Millennials, according to a LendEdu study. When it comes to risk, around half of Baby Boomers and Millennials recognise global economic instability as a concern, although 40% of Millennials say they would invest more in response to a 20% fall in the value of their investment, compared with 23% of Baby Boomers. In practice, however, younger generations prove less patient in times of volatility, with 15% of Millennials and of Generation X having made quicker, potentially less-considered changes to their portfolios in response to political or stock market instability, compared with 7% of Baby Boomers.