Advisors failing to understand under-40s

Report suggests that financial advisors need to do much more than just offer the latest digital tools

What do you need to do to attract investors under the age of 40? According to a CFA Institute blog, you must do much more than just offer digital tools.

It suggests that advisors need to understand and provide solutions for their financial needs: which are often unique compared to other generations.

It quotes a Capgemini Financial Services study which revealed that trust and satisfaction among high net worth investors who are below the age of 40 is low. It suggest that these investors often drop firms when they are not happy and can even make accounts with more than one firm so they can move on easily.

David Wilson, the head of Capgemini’s strategic analysis group, told the publication that many young investors feel that financial advisors don’t understand them: often assuming their financial needs are simple. In reality however, they have “much deeper” requirements than older investors – for example they are often more concerned about education costs, retirement and passing on assets.

Simultaneously, a report from Reuters outlines the issues that 18- to 35-year-olds have when they don’t have money, with just 47 per cent saying they would be willing to give up travel, vacations, concerts or sports games in order to get a better handle on their debt.