NEW YORK, Aug. 20, 2018 /PRNewswire/ -- Broadridge
Financial Solutions, Inc. (NYSE:BR), a global fintech leader and
recent addition to the S&P 500 Index, today announced the
results of custom research conducted through The Center for
Generational Kinetics, which uncovered unexpected wealth management
trends in Millennial preferences related to investing, financial
communication and saving for retirement. The research findings were
unveiled at Broadridge's GetConnected conference in Keystone, CO on August
19, 2018.
Findings also contrast assumptions that Millennials are not
focused on saving for retirement. Two-thirds of Millennials
surveyed report that they are actively doing so, even though 69
percent are not working with a financial advisor.
"Millennials are open to receiving investment advice and
planning for retirement," said Cindy
Dash, Head of Broadridge's Matrix Financial Solutions. "The
results of the study show a clear opportunity for financial
advisors to utilize technology-enabled solutions to better educate
and communicate with all generations, including Millennials."
Personal Preferences
Despite expectations that Millennials operate strictly in a
digital world, the survey shows that this group finds in-person
meetings and phone calls to be the best way to build trust with a
financial advisor. Meanwhile, only 17 percent of Millennials view
texting and only 9 percent view social media as trust-building
communications.
While 67 percent of those surveyed prefer communication from a
financial advisor at least monthly, 28 percent of Millennials
prefer contact on a daily or weekly basis. However, only one in
five Millennials whose parents have a financial advisor have
actually met their parents' advisor. At the same time, 55
percent indicated they would consider or would use their parents'
financial advisor. A possible result of this lack of communication,
Millennials are the only generation found to trust retirement
advice from family and friends over advice from a financial
professional or advisor.
When surveyed on preferred financial advisor traits,
Millennials' first priority is experience, though less so than
older respondents. Compared to older generations, Millennials are
more likely to seek advice from a professional who has similar
demographic qualities as themselves, such as gender, socio-economic
status and financial history.
Choosing the Right Vehicle to Success
Despite feeling stronger than other generations that the stock
market offers opportunities for financial growth, Millennials are
more confident investing in savings accounts than workplace
retirement plans, tax advantaged plans or real estate. In contrast,
older survey respondents are most likely to trust workplace
retirement plans and tax advantaged plans.
"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," said Dash. "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.
Launching a national study demonstrates our commitment to
delivering maximum value to our clients in their efforts to reach a
new generation, allowing them to get ahead of today's challenges
and capitalize on tomorrow's opportunities in innovative ways."
Health Savings Accounts (HSAs) also prove to be a blind spot for
Millennials. More than half of this generation is interested in
HSAs, but only one-third of Millennials are taking advantage of
them. Further, 43 percent of Millennials surveyed are not familiar
with these solutions, highlighting yet another opportunity for
advisors.
"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."
Methodology
Research included a 25-question survey administered to 1,000+ US
respondents ages 22-59, weighted to current US census data for age,
region and gender, and was conducted from July 10, 2018 – July 16,
2018. Figures are statistically significant at the 95%
confidence level with a margin of error of +/-3.1 percentage
points.
To explore more findings from this research, please contact a
Broadridge media representative.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE: BR) a global fintech
leader and a member of the S&P 500, is a leading provider of
investor communications and technology-driven solutions to banks,
broker-dealers, asset managers and corporate issuers globally.
Broadridge's investor communications, securities processing and
managed services solutions help clients reduce their capital
investments in operations infrastructure, allowing them to increase
their focus on core business activities. With over 50 years of
experience, Broadridge's infrastructure underpins proxy voting
services for over 50 percent of public companies and mutual funds
globally, and processes on average more than US $5 trillion in fixed income and equity trades per
day. Broadridge employs over 10,000 full-time associates in 18
countries.
For more information about Broadridge, please visit
www.broadridge.com.
About the Center for Generational Kinetics
The Center for Generational Kinetics is the #1 Millennial and
Gen Z research, speaking, and consulting firm. Their team of
Ph.D.'s work with more than 160 clients annually to solve tough
generational challenges through original research, on-site
innovation, and consulting solutions tied to measurable outcomes.
The Center's diverse clientele ranges from global automakers and
financial service pioneers to retailers, CPG, private equity, and
technology companies. The work of The Center's co-founders to
explore, understand, and bridge different generations has been
featured in hundreds of media outlets around the world, from 60
Minutes and the BBC to The Washington Post. Learn more about The
Center and access their team's latest research
at http://genhq.com.
Investors:
W. Edings Thibault
Head of Investor Relations
+1 516-472-5129
edings.thibault@broadridge.com
Media:
Tina
Wadhwa
Broadridge Financial Solutions
+1
212-973-6164
tina.wadhwa@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.