Gen Z, Millennials Set to Inherit Wealth Want More Conversations
with Family, Advisors
- 81% think family meetings would be valuable
- 90% believe advisors have useful insights, yet just 33% work
with an advisor
- Economy and healthcare costs top concerns for inheritors
Parents are talking to their children about money, however, four
out of five (81%) of 20- to 39-year-olds expecting to inherit more
than $1 million believe family meetings would be valuable,
according to a survey conducted by Wells Fargo Wealth &
Investment Management (WIM). The survey shows that while there are
conversations happening between the generations about money, almost
three-quarters (72%) say that talking about an inheritance would
help them plan better for the future, and more than half (54%) wish
there was more transparency in their family about money.
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Survey says, Gen Z, Millennials want to
talk about money (Graphic: Wells Fargo)
“It’s okay to discuss inheritances with your children, and often
times it’s beneficial,” said Michael Liersch, head of WIM’s Advice
and Planning Center of Excellence. “The survey data showed that
more than half of the respondents (52%) worry that money
discussions might make it seem like they’re solely focused on
gaining their inheritance, but in fact, nearly nine out of ten
(86%) are more interested in inheriting their parents’ values than
money. These values can be passed down through open dialogue.”
Three-quarters (72%) say parents have talked with them at least
somewhat about their inheritance plans and potential beneficiaries,
while the other one in four (28%) have only a vague idea, at best,
about what their parents plan to do. Nearly half (46%) say parents
rarely or never discuss values about money and the role that money
plays in their parents’ lives, while 66% never discuss parents’
charitable giving.
Advice adds value
While just 33% surveyed say they work with a financial advisor,
an additional four in ten (40%) say they would like to do so. Among
those surveyed whose parents work with an advisor (two-thirds of
all survey respondents), half (50%) of those have met with that
advisor, and one in five (20%) currently work with that advisor for
their own finances. Three in five (60%) would be interested in
working with their parents’ advisor, and nine in ten (90%) surveyed
believe it would be valuable for them to meet with that advisor in
the future.
“With economic concerns and rising inflation, the next
generation is looking for help setting goals and putting together a
plan to meet them,” said Liersch. “This survey tells us an
overwhelming majority (90%) of inheritors believe advisors have
useful insights. It is more important than ever that we help them
meet their financial goals and get the most out of their money —
whether inherited or earned.”
Fewer than one-third (30%) surveyed have a written plan that
specifies their financial goals and how they are going to get
there; likewise, just one-quarter (28%) have a will or estate plan
of their own.
“These numbers show the next generation of inheritors want
valuable advice from advisors they trust. At Wells Fargo, we call
that LifeSyncSM,” said Liersch. “With LifeSync, advisors work with
clients to make more informed decisions — big or small, simple or
complex — through all stages of their financial journey. It’s
advice for life.”
LifeSync helps advisors collaborate with clients to plan for
known and unknown events, offer suggestions to help clients make
the most of their money, and check in with clients when their life
circumstances change and their needs shift.
Creating a path for clients during economic
challenges
More than four in ten (41%) of those surveyed cited economic
changes or downturns as the top threat to their inheritance. Three
in ten (30%) fear health care and long-term care costs for their
parents will affect the family wealth and have an impact on their
inheritance. One in four (26%) cite issues around family dynamics
as a threat.
“Some of these are issues out of their control, and with
inflation on the rise, as well as the cost of goods, these numbers
likely will only go higher,” said Liersch. “Today’s economic
environment makes it more important than ever to have meaningful
financial discussions among family members while there’s ample time
to plan for what’s ahead.”
Nearly half of those surveyed (44%) want advisors who keep
up-to-date with trends and changes. “It’s incumbent upon us as
advisors to continue creating meaningful tools for our clients to
engage them and help them plan for their futures in an
ever-evolving world,” Liersch said.
Liersch will be discussing several survey topics and much more
on season three of his “About Money” podcast set to be released
this June. You can access the podcast through Wells Fargo and
Spotify.
Investment and Insurance Products are:
- Not Insured by the FDIC or Any Federal Government
Agency
- Not a Deposit or Other Obligation of, or Guaranteed by, the
Bank or Any Bank Affiliate
- Subject to Investment Risks, Including Possible Loss of the
Principal Amount Invested
About the survey
Versta Research conducted the online national survey of 551
adults in their 20s and 30s who expect to inherit at least $1M from
their parents. The survey was conducted January 3–24, 2022.
Assuming no sampling bias, the maximum margin of sampling error is
±4%.
About Wells Fargo Wealth & Investment Management – April
14, 2022
Wells Fargo Wealth & Investment Management (WIM) is a
division within Wells Fargo & Company. WIM provides financial
products and services through various bank and brokerage affiliates
of Wells Fargo & Company and is one of the largest wealth
managers in the U.S., with more than $2 trillion in client assets.
WIM serves clients through the following businesses: Wells Fargo
Private Bank serves high-net-worth and ultra-high-net-worth
individuals and families. Wells Fargo Advisors provides advice and
guidance to help clients maximize all aspects of their financial
lives. Through Wells Fargo Private Bank, WIM is also a leading
provider of trust, investment, and fiduciary services, including
personal trust services and a number of specialized wealth services
designed to meet the diverse needs of high-net-worth clients.
Wells Fargo Private Bank provides products and services through
Wells Fargo Bank, N.A., Member FDIC, and its various affiliates and
subsidiaries. Wells Fargo Bank, N.A., is a bank affiliate of Wells
Fargo & Company.
Wells Fargo Bank, N.A. offers various advisory and fiduciary
products and services including discretionary portfolio management.
Wells Fargo affiliates, including Financial Advisors of Wells Fargo
Advisors, a separate non-bank affiliate, may be paid an ongoing or
one-time referral fee in relation to clients referred to the bank.
The bank is responsible for the day-to-day management of the
account and for providing investment advice, investment management
services and wealth management services to clients. The role of the
Financial Advisor with respect to the Bank products and services is
limited to referral and relationship management services. Some of
The Private Bank experiences may be available to clients of Wells
Fargo Advisors without a relationship with Wells Fargo Bank,
N.A.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial
services company that has approximately $1.9 trillion in assets,
proudly serves one in three U.S. households and more than 10% of
small businesses in the U.S., and is the leading middle market
banking provider in the U.S. We provide a diversified set of
banking, investment and mortgage products and services, as well as
consumer and commercial finance, through our four reportable
operating segments: Consumer Banking and Lending, Commercial
Banking, Corporate and Investment Banking, and Wealth &
Investment Management. Wells Fargo ranked No. 37 on Fortune’s 2021
rankings of America’s largest corporations. In the communities we
serve, the company focuses its social impact on building a
sustainable, inclusive future for all by supporting housing
affordability, small business growth, financial health, and a
low-carbon economy. News, insights, and perspectives from Wells
Fargo are also available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com |
Twitter: @WellsFargo
News Release Category: WF-ERS
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version on businesswire.com: https://www.businesswire.com/news/home/20220503005045/en/
Media Vince Scanlon, 336-430-9786
vince.scanlon@wellsfargo.com
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