Is there really such a big difference between a regular savings account and a retirement account? Some Millennials might not think so, which should give many financial professionals pause.
A brand new, national research study conducted by Broadridge Financial Solutions, Inc. and The Center for Generational Kinetics found that Millennials might have some dangerous ideas about savings and retirement.
“Millennials would rather put their money in a savings account than a workplace retirement plan, effectively pushing pause on the potential for qualified plan growth,” explained Cindy Dash, Head of Broadridge’s Matrix Financial Solutions. “This demonstrates a significant need for financial guidance. The good news is that advisors don’t need to completely reinvent the wheel to meaningfully engage the next generation of clients. They just need to know and take action on what Millennials actually want.”
“There is an expectation that every generation differs from the one before, and that is true of Millennials—to an extent,” said Jason Dorsey, President of The Center for Generational Kinetics. “By delineating what is specific to Millennials and what rings true for Americans across generations, we’ve uncovered significant, immediate opportunities for financial advisors to grow their practices. The key is that financial advisors need to evolve their practices starting today—and adapt along with technology and communication trends—to build trust and benefit clients and prospects. Doing so will attract and keep not just the fast-emerging Millennials, but every other generation, too.”
This is not only important for financial advisors to know about Millennials, but equally important for Millennials to understand how a financial advisor can help them. Many Millennials are understandably cautious when it comes to investing since they grew up during one of the roughest financial patches in modern United States history.
However, with the right professional on their side, Millennials will not only feel comfortable putting their money into a retirement plan which would help them greatly in the long run, but they might begin to feel confident in taking more robust financial steps.
To learn more about what millennials look for in a financial advisor, visit Broadridge Financial Solutions for the results of the study.