Many financial advisors are missing out big time by failing to better engage millennial clients, according to new research.
Fifty-six percent of advisors responding to Hartford Funds’ third annual Advisor Anxiety Survey, released Monday, reported that they focused on attracting millennial clients “less than other age groups” or “not at all” even as they identified prospects in that category.
At the same time, 70% said they targeted clients in their late 20s and early- to mid-30s. Nearly two-thirds of advisors who were not targeting millennials at all said they were also pursuing prospects in this age group.
“The term ‘millennial’ has become a buzzword in financial services, being discussed constantly by financial firms and advisors,” Hartford Funds’ strategic markets director Bill McManus said in a statement.
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“However, our survey suggests a disconnect when it comes to understanding who falls into this millennial category. In an attempt to filter noise, many advisors might be missing valuable insights for attracting their younger client targets.”
Hartford Funds conducted the in-person survey of 103 financial advisors in June.
Poll respondents’ retirement plans and lack of millennial engagement raised even more concerns, McManus said.
Seventy-one percent of advisors in the survey said they planned to work for at least 15 more years, and 53% planned to work for more than 20 years, yet they were not focused on attracting millennial clients.
More than half of advisors in both groups targeted millennials less than any other age group or not at all.