More than half (57%) of Millennial and Gen Z investors say they have made changes to their finances during the past year, compared with just 30% of Gen X and Boomer investors. Pandemic fueled investment amendments: A notable 40% of all investors indicate they are financially worse now than before the pandemic.
The digital channels most frequently cited as being used more often are email (29%), mobile app (22%) and website (20%).
Younger investors crank up digital interaction: Investors under age 40-a group already more digitally engaged than older investors-have substantially increased their usage of digital channels to interact with their advisor or firm since the onset of the pandemic. 652 among those who did not-but also present a missed opportunity to further engage the next generation of investors. These conversations have a significant effect on investor satisfaction-710 among those who had a conversation vs. Overlooking the next generation: Among a significant portion of investors consisting of Pre-Boomers and Boomers, 59% say they were not asked by their advisor about the needs of beneficiaries, and only 23% say the advisor initiated a conversation between the client and their beneficiary. When investors are using more advanced products related to their needs, such as estate planning and philanthropic giving, their perception about their needs being met increases to 43% from 32%. Most investors say their needs aren’t being met: Only 36% of investors say their wealth management needs are completely being met by their firm and this has a significant effect on their level of satisfaction (+173 points on a 1,000-point scale). Wealth management firms and advisors have a critical role to play in helping them do this, and they can’t afford to wait for clients to ask them about it.”įollowing are some key findings of the 2021 study: “Investors in Canada-especially younger ones-increasingly want their investments to align with not only their financial goals but also their values. “We are at the tipping point of a massive generational wealth transfer,” said Mike Foy, senior director and head of wealth intelligence at J.D. 
This trend is echoed among older age groups as well. The study also shows that 22% of investors under age 40 clearly see the commitment for ethical investing from their full-service investment firm, while 46% say they either have doubts about their firm’s commitment to ESG or don’t know about it. Younger investors who strongly believe their investment firm is committed to ESG are much more willing to act as avid brand ambassadors while those who say they don’t see a commitment become detractors. Power 2021 Canada Full-Service Investor Satisfaction Study, SM released today, Millennials and Gen Z 1 investors who strongly believe their investment firm is committed to ESG (environmental, social and corporate governance) investing are twice as likely to increase their investment compared with those who don’t perceive this commitment (31% vs. TORONTO-( BUSINESS WIRE)-With nearly $700 billion in financial assets poised to be transferred to the next generation in Canada by 2026, full-service wealth management firms need to do a better job of catering to the needs and values of this emerging demographic of younger investors or risk losing current and future business.
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