The industry seems obsessed these days with capturing millennial clients. But advisors should probably hold off revamping their business to cater to these younger clients.
According to data collected by PriceMetrix and Cerulli Associates, the “great wealth transfer” of assets for millennials is about 30 years away. Advisors can expect to see about $18 million in assets change hands over the next 15 years. “Right now, the industry really hinges on GenX,” says Pat Kennedy, co-founder and chief customer officer for PriceMetrix. Boomers account for 43 percent of full-service wealth, compared to 17 percent for Gen X (35-54 year olds), he added.
“If I were an advisor right now, I’d be going out and getting 50-year-old clients,” Kennedy says. And for the most part, that’s what advisors are doing. Advisors between the ages of 30 and 35 on average have 60-year-old clients. Additionally, only about 23 percent of new clients are under the age of 45, a level that has not changed since 2011, according to PriceMetrix data.