As Millennials Turn 40, 5 Things Advisors Should Know

The oldest members of the millennial generation, now in their 40s, are entering their peak earning years with financial means and maturity. This bodes well for them and for financial advisors, according to a survey released Wednesday by Natixis Investment Managers.

There’s a notion abroad that millennials are entitled beneficiaries of their parents’ wealth and poorly prepared idealists with trust issues. Natixis IM’s findings give the lie to that stereotype.

Consider that 75% of U.S. millennials surveyed have a professional financial advisor, compared with 70% of baby boomers and 67% of Gen Xers. 

Financial planning is the professional advice millennials are most interested in. They are also diligent savers; on average, they put aside 19% of their income for retirement.

Millennials have worked to accumulate considerable wealth so far. Thirty-seven percent of survey respondents attributed this to business ownership or self-employment income, and 43% said it came from investing. Just 13% cited an inheritance or family money as a source of their wealth. 

“Millennials have high expectations, but they also are proactive when it comes to planning,” Dave Goodsell, executive director of the Natixis Center for Investor Insight, said in a statement. 

Goodsell noted that millennials have enjoyed a long bull market with low interest rates and little inflation for much of their adult lives, but have also known what loss looks like and want to protect their interests as they see risks rise and their finances grow more complex. 

“The good news is that millennials not only recognize the value of advice, but they trust their financial advisors almost as much as they trust themselves,” he said. 

CoreData surveyed 202 millennials in the U.S. with minimum investable assets of $100,000 in March and April 2021 as part of a larger study of 2,459 millennials across North America, Latin America, Asia, the U.K., Europe and the Middle East. Natixis Investment Institute conducted additional analysis in March this year. 

See the gallery for five truths about millennials at 40 revealed by Natixis IM’s research findings.