Affluent millennial investors in the US are less loyal to their financial advisers compared to their older counterparts, according to the J.D. Power 2017 U.S. Full Service Investor Satisfaction Study.
Around 48% of millennials with $100,000 in investable assets said that they would definitely or probably leave their existing provider in the next 12 months. In contrast, only 8% of investors from other generations held the similar view.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The study unveiled that even though these affluent millennials account for only 8% of the investable asset pool, they control 55% of assets at risk of switching their existing abodes.
The study also found that only 54% of full service investors have a documented financial plan, which mainly focuses on retirement planning. Major purchases or education planning were found to be priority for millennials, while boomers preferred capital preservation or estate planning.
Also, 25% of millennials have tried, or are using a robo-advisor platform and 28% of these users termed their satisfaction with the automated platform higher compared to their full-service firm. Over one-third (34%) of the millennials said they have a secondary self-directed account.
J.D. Power director of the wealth management Mike Foy said: "Wealth managers have been slow to focus on Millennials because they don’t yet have the assets Boomers do, but when looking at potential money in motion—even in the short term—the picture looks quite different."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"With the emergence of robo-advisors and self-directed platforms, investors have more options than ever, both within and outside the traditional full-service channel."
