Traditional thoughts of financial planners and wealth management services conjure images of seasoned investors planning for retirement. But the landscape is shifting.
Today, there’s a pressing need for financial advisors and wealth managers to market to younger generations.
What marketing experts are seeing: Agency 102 is a woman-owned marketing agency with a focus on purposeful content creation and data-driven digital marketing strategies. We’ve observed a major trend among financial planners and wealth managers.
The number one request from our financial services clients: They want strategies like video marketing and SEO blogging to target younger demographics who are ready to invest.
What Agency 102 recommends: Explore marketing on new channels where young audiences already are – social media, email, and the web (via SEO).
Is your financial planning firm ready for the demographic shift? Here are 5 reasons why financial advisors need to focus their marketing efforts on attracting a new wave of clientele.
Gen Xers and millennials will inherit A LOT of wealth – and soon.
Millennials are expected to inherit about $24 trillion from their parents by 2030 (Deloitte).
This wealth transfer presents a significant opportunity for financial advisors to engage with younger clients who are about to become major wealth owners.
The average wealth management client is getting younger.
2020 saw the largest single-year drop in the average age of new wealth management clients (McKinsey).
Younger generations want to work with wealth management services. In fact, nearly half of millennials are already using or considering using a financial advisor (Fidelity Investments).
Younger demographics = different life & financial priorities.
These are the financial priorities of the typical millennial (Charles Schwab):
- 35% – vacation savings
- 29% – saving for a down payment
- 29% – saving for retirement
Frankly, millennials need and want diversified financial advice tailored to their unique lifestyle and values.
Plus, they’re already seeking it out on social media. In fact, social media is often the first place younger generations go when they’re seeking financial advice. That’s why…
Young people expect to have advice delivered digitally.
79% of young adults get financial advice from social media (Forbes Advisor).
Having grown up in the digital age, millennials and Gen Z are tech-savvy and highly reliant on digital tools and platforms. They expect convenient, user-friendly, and online-accessible solutions for their financial needs.
Financial advisors and wealth managers must embrace technology and digital marketing to meet these expectations.
If your marketing doesn’t involve digital platforms, younger prospects simply won’t find you.
Younger clients are more willing to spend money.
The average wealth management client is 62 – much older than the average age in the United States of 40 years old.
Meanwhile, the average life expectancy is 77. That means wealth management firms have about 15 years left with their older clients – versus 37 years or more with Gen X and younger.
This aging client population puts pressure on your business. Older clients are more conservative with their investments and spending on fee products – a key driver of firm growth (McKinsey).
Most importantly, clients under the age of 45 grow revenue nearly twice as quickly as those over 45.
Financial advisors and wealth planners: it’s time to rethink your marketing.
Attracting and securing younger clients is essential to the long-term growth of your financial firm. Build relationships with them now to foster long-term partnerships that extend across generations.
Young people want personalized attention, digital experiences, and educational support from their financial advisors – which is easily accomplished through smart marketing.
Financial advisors and wealth managers who adapt to these demographic shifts by marketing their services directly to young people will benefit from long-term client relationships and a thriving practice.
Need a partner to help you navigate industry changes and market to a new demographic? We can help you generate client-grabbing marketing content that’s compliance-approved.
