Millennials, now entering their early forties, are increasingly concerned with securing their financial futures. Their outlook on money has been shaped by the various economic challenges they’ve faced throughout their lives. Although they are comfortable using digital tools, they still value personalized financial advice, particularly during uncertain times. As they focus on planning for retirement and managing their finances, millennials are seeking support from both financial institutions and employers. To effectively engage this generation, companies must understand their specific needs, make good use of technology, and offer tailored advice and products.

Millennials, America’s largest generation with approximately 72.24 million people, have a distinct approach to finances. Historically, they have been slower to reach traditional financial milestones like homeownership and retirement savings compared to older generations. However, they are now entering a phase of serious financial planning, and it’s crucial for financial institutions to pay attention. As the oldest millennials enter their early forties, our Logica® Future of Money Study shows that they are taking a different approach to managing their finances compared to previous generations.

According to Wealth Management, millennials are heavily focused on achieving financial security. Having lived through significant events such as the 2008 financial crisis, the pandemic, the tech crashes of 2022, and a recent period of high inflation, they are particularly aware of economic instability. By using the right consumer research, companies can engage millennials with the appropriate financial products and services. Understanding their unique experiences, demonstrating empathy and adaptability, and leveraging their preference for technology will be key in reaching them.

The Role of Technology in Millennial Finances

Millennials are well-informed and tech-savvy when it comes to investing. Emerging technologies are playing a significant role in shaping the future of money for this generation. Our study reveals that 29% of Americans across all generations believe technology will have the biggest impact on investing over the next five years. Millennials, in particular, have shown a strong interest in technology-driven investing, with a significant increase in interest in cryptocurrency investments (rising from 49% to 64% in just one year). They are comfortable using technology for investment strategies, including robo-advisors, online brokerages, and AI, as well as investing in cryptocurrencies.

We can expect millennials to demand innovative technology to help them manage their finances, to adopt it early, and to become heavy users and advocates of such technology. Financial firms can rely on millennials to help develop and refine their financial technology offerings by using targeted consumer research to understand their preferences. Additionally, millennials can become advocates for new technology among their peers, helping companies spread the word and drive engagement. For financial firms aiming to grow with this large generation, incorporating technology into their growth strategy will be essential.

Millennials Seek Personal Financial Advice

Despite their growing reliance on technology for investing and saving, many millennials still seek personal financial planning support from employers and financial institutions and are turning to financial advisors. Our Future of Money Study emphasizes that nothing replaces trusted, personal advice, especially during uncertain economic times. This is particularly true for millennials, who are working diligently to manage their finances and plan for the future. The financial crises they have lived through have increased their desire for reliable financial advice. According to Dow Jones, advisors need to offer personalized, credible, and frequent communication to meet millennials’ evolving needs and build trust.

While many people seek help in managing their money, millennials are the most likely to seek advice. Our research shows that 71% of millennials are looking for help managing their money right now, compared to 63% of the general population. Additionally, 75% of millennials seek help in choosing investment options, compared to 62% of the general population. Across 13 different financial areas, millennials are often the most likely to be seeking advice. This generation is clearly leading the way in terms of personal financial advising needs.

Support for Millennials’ Retirement Goals

Millennials are also seeking help with reaching retirement and other financial goals, not just from advisors but also from employers. As they advance in their careers and enter peak earning years, employers play a crucial role in helping them manage their financial lives. This includes providing access to advice and technology for retirement planning.

Our latest study reveals that financial strain is preventing many Americans from saving for retirement, with varying levels of optimism and concern about their financial futures. More than half of millennials plan to continue working full-time or part-time after retirement, highlighting the need for better financial programs from employers.

The percentage of working Americans who believe it is important for employers to offer financial programs to help manage their finances has significantly increased in the past six months, rising from 75% in fall 2023 to 81% this spring. This need is particularly strong among younger generations, with over nine in ten (91%) of Gen Z and 87% of millennials saying it is important for employers to offer financial programs.

Financial firms that offer retirement accounts, HSAs, insurance, and other benefits have an opportunity to engage millennials and build loyalty by providing tech platforms, combined with human advice, to help them manage their money efficiently and comprehensively.

Understanding Millennials is Key to Developing Products and Services

Millennials are at a financial crossroads and are becoming a generation to watch as they begin to prioritize money management and secure their financial futures. Here are steps to ensure you’re ready to work with millennials:

– Understand your customer and prospect base, focusing on how millennials are represented in it.

– Identify the specific needs of these millennials and how you can meet them.

– Evaluate your technology, products, and services to identify benefits and gaps, and refine them to meet the needs of millennials.

By deeply understanding where millennials have been and where they are aiming to go, financial institutions can develop services and products that resonate with them, offer personalized advice, and leverage technology to meet their evolving needs. With a proactive approach to financial planning and a strong reliance on trusted guidance, millennials are set to shape the future of financial strategies and services.

The Logica Research Future of Money Study is a twice-yearly research report that offers a comprehensive snapshot of the current consumer mindset regarding money. The online study has been conducted since 2017 and includes 1,000 U.S. adults and an additional 200 older Gen Zers (ages 16-25).