Millennials Seek More Access to Advisors and Value Financial Planning as Much as a Pay Raise  

It’s easy to stereotype millennials as a generation that relies solely on digital interactions for everything, including financial planning. However, this assumption is inaccurate. New research from The Guardian Life Insurance Company of America® (Guardian) shows that millennials are more complex when it comes to financial planning habits and preferences. The study reveals that millennials are more similar to previous generations than many may have thought, challenging some common beliefs.

The study, titled *Millennials and Money: Understanding What Drives Financial Confidence*, shows that millennials are more open to learning about financial strategies than expected. Nearly 75 percent of millennials said they would attend an in-person financial seminar, compared to 69 percent of generation X and 62 percent of baby boomers. In addition, 87 percent of millennials said that learning more about financial products and services would boost their confidence in reaching their financial goals. Nearly all millennials who have a financial plan and are on track to meet their goals agree that more knowledge about financial services would increase their confidence.

A Generation Open to Financial Guidance  

Millennials are not just open to learning about financial services; they also value working with financial advisors. More millennials than any other generation (83 percent) believe that having a trusted financial advisor is key to their financial confidence. They seek advice not only on how to grow their wealth but also on how to protect themselves and their families through insurance. Like previous generations, millennials are just as focused on financial protection, even if it means delaying short-term savings and investments. Additionally, 76 percent of millennials think it’s important that their advisor stays up-to-date on insurance trends.

“We’re seeing millennials show a strong interest in improving their financial knowledge and working with advisors to grow and protect their wealth,” said Christopher Dyrhaug, Head of Individual Markets at Guardian. “They value education and prefer learning in group settings. While technology plays a role, there is still a strong desire for in-person learning to build financial confidence.”

When it comes to communication with financial advisors, 45 percent of millennials prefer face-to-face meetings, compared to 37 percent of other generations. Surprisingly, texting and social media rank lower as preferred communication methods. Millennials also make greater use of online financial tools than older generations, with 35 percent relying solely on these tools for financial planning, compared to 27 percent of generation X and 21 percent of baby boomers.

Overall, millennials view financial advisors as valuable partners who can help them reach both short- and long-term financial goals. One in three millennials who currently don’t use a financial advisor say they are likely to start within the next year, making them the most likely group to seek professional financial guidance compared to other generations.

The Importance of Thoughtful Financial Planning  

Despite being seen as a generation that seeks instant gratification, millennials understand the importance of careful financial planning. Nearly 90 percent of millennials believe that having a clear financial plan would increase their confidence in meeting their goals. They view having a financial plan as just as important as receiving a raise. Over half (62 percent) of millennials also believe that financial advice from their employer would improve their financial confidence. However, compared to other generations, millennials show less confidence in achieving their financial goals, highlighting the need for professional guidance.

“Our data shows that millennials place a high value on financial planning, sometimes even more than getting a bonus or career advancement,” said Dyrhaug. “This provides valuable insight into their mindset regarding financial confidence and the role advisors can play in guiding them.”

Methodology  

The research is based on online interviews with 3,061 Americans between the ages of 21 and 72, with household incomes of $50,000 or more, conducted in February 2018. All participants were working either full- or part-time and had never retired. The results are weighted to align with U.S. Census Bureau data for this demographic.

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