Cerulli: Investors under age 40 lack financial advice

4 percent—Changed careers

1 percent—received an inheritance

“Financial providers need to better recognize and identify when these young investors hit various life stages and provide more advice and guidance,” Cerulli Analyst Roger Stamper says in a press statement. “The multitude of life events taking place during these years is likely to dictate younger investors’ interactions with financial providers as they progress through various life stages.”

The report urges asset managers and record-keepers to “use the advice gap as a market opportunity” by engaging with clients under age 40 prior to big life events.

According to record-keepers, Cerulli states, simplification and automation are the best plan design changes that plan sponsors can make to encourage savings among investors under 40. More than 9 in 10 (92 percent) urge simplification of the enrollment process. Other plan design change they point to include:

Implement auto-escalation (85 percent of record-keepers)

Simplify investment men (77 percent)

Adjust match to higher percentage (69 percent)

Provide complete financial education (54 percent)

Other (31 percent)