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Here's What's Most Important for Millennials Seeking Financial Advice

By Alex Padalka February 21, 2019

Financial advisors who hope to lure millennials as clients should note key differences between them and previous generations, particularly because four in 10 still don’t work with an advisor, according to a recent survey.

For one, millennials are far more concerned about taxes: 33% of them rate taxes as their top financial concern, compared to 29% of members of Generation X, 31% of baby boomers and 30% of the generation preceding baby boomers, according to a recent report from Nationwide Advisory Solutions, formerly known as Jefferson National.

And millennials’ second-rated concern over the next 12 months is managing debt, while Gen-Xers rate it as their fourth top concern and the older generations don’t rate it among their top five concerns, according to the survey, which polled around 972 financial advisors and 827 investors over the age of 18, among whom 161 were millennials.

When looking for an advisor, millennials aren’t that different from other generations in saying that experience is what matters the most, according to the report. But millennials are the only ones who rate socially responsible investing as one of the two top factors in selecting an advisor, the survey found. They’re also more concerned about reducing fees than other generations, rating it among their top three factors in choosing an advisor, according to the report.

However, only 16% of millennials rate an advisor working under a fee-based fiduciary standard as one of their top four factors in choosing one, compared to 29% of Gen-Xers, 22% of baby boomers and 29% of the generation preceding baby boomers, the survey found. Nationwide suggests that advisors therefore have an opportunity to educate millennials “on the importance of finding an advisor who puts clients’ best interests first.”