Gen X investors stand out from both their younger and older counterparts in terms of priorities, preferences and concerns, and provide RIAs and fee-based advisors with a huge opportunity to tap into a valuable client segment, according to a study released Monday by Jefferson National, a Nationwide business.
The study showed that 52% of Gen X investors do not have an advisor, and are least likely to seek advice even though they are in their prime earning years, 37 to 52, and are poised to build and inherit $22 trillion in financial assets by 2030, up from $5 trillion in 2015.
“Being in their prime earning years and next in line for inheritance, Gen X is a vital segment for advisors to target in order to enhance profitability and set their firms up for future success,” Craig Hawley, head of Nationwide’s advisory solutions business, said in a statement.
“And each year, successful advisors are most likely to say that Gen X will be their primary target over the next 12 months.”
What Your Peers Are Reading
A recent report discusses why advisors need to be working with Gen Xers.
The Jefferson National study is based on a Harris Poll-conducted online survey last spring among 779 employed financial advisors and 817 adult investors who were primary or shared financial decision makers with investable assets of more than $100,000.
Of particular note for advisors was the survey finding that 30% of Gen Xers said their number one reason for having an advisor was concern about saving enough for retirement. Their second main reason — feeling confident in their financial future — trailed by 10 percentage points.