From the September 2013 issue of Investment Advisor • Subscribe!

August 26, 2013

Under 55 and Underserved

To keep your business healthy, you may need to cultivate prospects who are 10, 20 or even 30 years younger than your average client today.

This interesting proposition came out of Pershing LLC’s recent “Investor of the Future: The Quest for Tomorrow’s Affluent Clients Starts Today” report. One of the findings of this study was that advisors’ perception of the relative appeal of various affluent age groups was heavily skewed toward older people.

Advisors in the survey estimated that 56% of affluent investors are 55 or older. A corresponding 60% of their clients are typically in this age group.

But in reality, people who are over 55 make up only 35% of the affluent market. Focus on them, and you’ll miss almost two-thirds of affluents—the 65% who are 54 or younger (and who may be less avidly courted by your competitors).

Age Group

% of Average Client Base

Estimated % of Affluent Market

Actual % of Affluent Market

< 35

(Millennials, Gen X)

5%

10%

10%

35-44

(Gen X)

11%

13%

22%

45-54

(Gen X, younger Boomers)

24%

21%

32%

55-64

(Boomers)

31%

28%

25%

≥ 65

(Older Boomers, Matures)

29%

28%

10%

TOTAL

100%

100%

99%

Source: “Investor of the Future: The Quest for Tomorrow’s Affluent Clients Starts Today,” Pershing LLC and BNY Mellon, 2013. Used with permission.

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