Financial advisers are required to offer substantial investment returns and make effective use of technological advances if they want to have younger investors as clients, according to a study by Fidelity Investments.

Fidelity Investments’ 9th Millionaire Outlook study revealed that Gen X/Y millionaires now constitute 18% of millionaires in the US and by 2030 will surpass baby boomers in terms of holding the most wealth in the country.

However, only 58% of Gen X/Y millionaires were found to be currently working with a financial adviser, as against 72% five years earlier. These younger investors expect investment returns of 16%, compared with only 7% of boomers.

Moreover, 62% of the younger millionaires said they want their adviser to offer more comprehensive services, as against only 25% of their older counterparts.

Also, 53% of the younger millionaires said that they would switch to a new advisor if theirs was unable to offer technology. The same opinion was cited by only 29% of boomers.

The study further revealed 49% of the younger millionaires likely or very likely to meet with their parents’ adviser on getting recommendation, although only 16% of advisers were found to be actively targeting younger investors.

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Fidelity Clearing & Custody Solutions head of the registered investment advisor segment David Canter said: “With the percentage of Gen X/Y millionaires using an advisor on the decline, the industry needs to take a step back and ask: What can we be doing to ‘tip’ these investors toward valuing advice?

“Gen X and Millennials don’t manage their finances in the same way that their parents did – they want an advisor who will be their own personal CFO and organize and simplify their financial lives.”