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Study Shows Opportunity for Advisors Amid Inflation, Volatility

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What You Need to Know

  • Only 29% of women surveyed were inclined to make a financial plan, compared with 39% of men.
  • Gen Z respondents were more likely to have a written financial plan than millennials, Gen Xers or boomers.
  • Nearly half of millennials who do not work with an advisor are planning or considering it this year.

A recent survey shows the value of advisors amid volatile markets and rising interest rates. According to research from D.A. Davidson & Co., people who work with a financial advisor are more likely to say they fully understand the impact of rising rates and inflation on their finances (85%) than those who do not (67%).

Differences Among Age Groups

Of those surveyed, only 29% of women were inclined to make a financial plan, compared with 39% of men. Age played a role in the survey results as well: Younger generations were more likely to have a written financial plan than older generations. Specifically, 67% of Generation Z respondents stated they had a written financial plan, while only 59% of millennials, 43% of Gen Xers and 37% of baby boomers stated they had one. 

The study showed that the percentage of people who feel they fully understand the impact of rising rates and inflation on personal finances increases with age:

  • Baby boomers, 79%
  • Gen Xers, 70%
  • Millennials, 69%
  • Gen Zers, 62%.

This increased understanding could be correlated with survey results regarding paying off debt. Boomers are most concerned with paying off debt in 2022, while younger generations’ biggest priority is saving for the future.

In a similar vein, older generations are more concerned with budgeting amid rising inflation in 2022 than their younger counterparts:

  • Boomers, 19%
  • Gen Xers, 12%
  • Millennials, 7%
  • Gen Zers, 5%.

Opportunity for Advisors

More than half (51%) of respondents did not have or create a written financial plan in 2021. The survey also showed that those who work with a financial advisor are more likely to make a financial plan (45%) than those who don’t (30%).

Furthermore, 76% of those working with a financial advisor said they achieved all or some of their financial goals in 2021. This is compared with 31% of those who did not work with a financial advisor. 

This represents an opportunity for advisors. One-third of survey respondents said they are considering starting to work with an advisor this year. Baby boomers expressed the most interest in working with an advisor (31%), followed by Gen Zers (24%), millennials (22%) and Gen Xers (22%).

Nearly half of millennials surveyed (49%) who do not work with an advisor are planning or considering working with one this year. The study notes that this is the highest percentage across all generations.