According to a Deloitte report in 2015, over two thirds of wealth-management clients are aged over 60. The younger generation is just not engaging at this level. Indeed, a Goldman Sachs survey from the same year showed more than half of millennials surveyed wouldn’t spend more than half an hour getting financial advice.
The same survey found only 28 per cent of millennials said they’d be willing to spend the time required to get the advice they need. Only 14 per cent listed a professional advisor as the source of their financial advice – 62 per cent listed their partner and 41 per cent their parents.
The good news is there are ways we can help. For advisers, it’s about changing our approach.
Jargon can be an issue. Advice can sometimes be complex and the terminology advisers use risks putting young people off.
At my firm, GCA Financial, we talk about ‘financial freedom’ rather than using terms like superannuation or retirement. Particularly if millennials hear these latter terms, they instantly picture being housebound or too old to do the things they have worked so hard for their whole lives.
Financial freedom is getting to a stage where you can work because you want to, not because you have to. It’s about having a choice to live your life the way you want to - including all the fun.
If you can give advice in terms millenials can understand they can relate to it. Millennials – including me - are highly visual. If you can map it out for them you then have a vehicle to talk about the ‘boring’ stuff.
If you talk to millennials who have gone through the advice process they recognise the value of the experience - but sadly those millennials are a very small minority.