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Survey: Millennials Increasingly Turn to Financial Advisors

Millennials are increasingly worried about not hitting their financial goals—and are turning to advisors for help.

In the next two years, even more millennials will be turning to advisors, according to a new survey by Broadridge. In a study of 1,000 U.S. investors, the financial services firm found that of the 39% of millennials not using a financial advisor, the majority (65%) plan to begin using one in the next two years. The demographic is more comfortable with investing than the total population, with 65% of millennials using self-directed brokerage accounts, compared with 52% of all investors surveyed. 

The survey also reiterated the low percentage of U.S. households using robo advice, a finding reported by data and analytics firm Hearts & Wallets last year. In its 2020 study, the firm found just 8% of survey participants used robo advice.

For its part, Broadridge found that just 6% of its survey participants use a robo advisor, even though 1 out of every 3 surveyed investors is familiar with the service. For human advisors, it's a sign there's still time to demonstrate their value compared with algorithmic advice. On the other hand, software developers see results like these as evidence that there's still room to grow.

That presents a prime opportunity for financial advisors, particularly as technology makes markets increasingly accessible, said Andrew Guillette, vice president of distribution insights for the Americas at Broadridge.

“Everyday investors are demanding a say in when and how they invest and are increasing their focus on financial planning,” he added. “Financial advisors now sit at a critical juncture where they need to directly demonstrate their value by providing client-centric tools, products and advice.”

Of those surveyed who plan to turn to financial advisors, over half (53%) are concerned they won’t hit their financial goals. Another highly rated reason (43%) for working with an advisor is to reduce financial stress.

TAGS: Technology
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