How Young Retirement Advisors Are Doing It Right

As Millennial advisors enter the industry, they're finding different ways of building relationships with investors

401k, advisors, millennials, retirement, financialGaining the trust of older clients through comprehensive service offerings.

Must they be so right at everything?

New data from global research and consulting firm Cerulli Associates finds that Millennials are avid adopters of financial planning.

On average, a Millennial advisor offers 5.1 planning services, compared with 4.6 for both Gen X and Baby Boomer advisors.

Millennials provide planning services to 82.5 percentage of their clients—more than their Gen X and Baby Boomer counterparts. Only two-thirds of Gen-X advisors’ clients currently receive financial planning services.

“The rising trend of comprehensive planning has swept up Millennial advisors who entered the workforce during its growing popularity,” Marina Shtyrkov, a research analyst at Cerulli, said in a statement. “In the early stages of their careers, they have already calibrated their practices, including pricing and service models, to fit a comprehensive planning structure and many provide expansive planning offerings.”

“As more Millennial advisors enter the industry, they may find different ways of building relationships with younger investors,” Shtyrkov added. “When working with next-generation clients on planning engagements, tandem planning sessions and increased avenues of communication become critical. Digital natives are more likely to expect on-demand interactivity.”

Cerulli finds that Millennial households are most interested in online financial planning features. Of Millennial households that do not currently do so, 55.7 percent are interested in viewing and updating their financial plan online, compared to 28.2 percent of Baby Boomer households.

“Millennials want to be able to access their planning tools online,” Kenton Shirk, director of Cerulli’s intermediary practice, concluded. “As a result, firms need to build out their digital capabilities to sustain younger investors’ thirst for digital consumption. Cerulli believes enhanced digital tools and interactive, collaborative meetings will become more important as planning evolves.”

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