ING DIRECT’s The Truth about Gen X and Gen Y report has revealed some startling insights into the minds of the emerging market of Gen X and Gen Y investors. According to the report, more than 95% of Gen X and Gen Y do not have a financial adviser. However, an overwhelming majority (85%) indicate that they would seek financial advice if they were to receive an inheritance.
With today’s younger generation set to inherit some $2.4 trillion in wealth from their parents in the years ahead, they are well-positioned become the key clients of tomorrow. Forward thinking advisers who recognise the potential and adapt accordingly will be in a strong position to tap into this emerging opportunity. But how do you adapt your business model to suit their particular needs and idiosyncrasies?
ING DIRECT’s research into the attitudes of Gen X and Gen Y highlighted a preference for face-to-face advice, with 80% of those surveyed saying they would prefer to meet with their adviser in person, even if just for the initial meeting.
But even within this group, it’s clear that a ‘one size fits all’ approach doesn’t cut it. According to the research, Gen X prefers to seek advice on an ad-hoc basis, whereas Gen Y prefers more regular contact.
With the younger generation, a more flexible and tailored approach to meeting their needs will be a key driver of engagement, so financial advisers need to consider how they can accommodate this in their service delivery.
ING DIRECT’s research found that affordability was a key considerations for both Gen X and Gen Y when it comes to choosing a financial adviser, with expertise, reputation and transparency around fees also rating highly. There is significant perception amongst Gen X and Gen Y that financial advice is expensive, therefore there is an opportunity to introduce a flexible service offering that isn’t cost-prohibitive.
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