Younger Generations Enter the Wealth Planning Conversation

As wealth transfers accelerate across generations, Millennials and Gen Z are becoming increasingly significant players in the financial planning industry. By 2030, it is estimated that younger generations will inherit a staggering $68 trillion in wealth, transforming the wealth management landscape. These emerging clients bring unique priorities, values, and expectations that require advisors to rethink their approach to client engagement and financial planning.

Understanding Millennial and Gen Z Clients

Unlike previous generations, Millennials (born 1981–1996) and Gen Z (born 1997–2012) prioritize values-driven decision-making and technology integration. Key characteristics of these groups include:

• Tech-Savvy Behavior: They expect digital-first solutions, from mobile apps to virtual meetings, for managing their finances.
• Focus on Experiences: Many younger clients prioritize funding experiences, like travel or education, over material goods.
• Value Alignment: Both generations are deeply interested in sustainable investing and financial strategies that align with their social and environmental values.
• Debt Awareness: Many Millennials, in particular, carry student loan debt, shaping their financial planning needs.

Advisors who recognize these preferences can create stronger connections with younger clients and position themselves as trusted guides in wealth management.

Strategies to Engage Younger Generations

1. Leverage Technology to Enhance Accessibility
   Younger generations are accustomed to seamless digital experiences in every aspect of their lives, and financial planning is no exception. They expect intuitive client portals, AI-powered financial tools, and on-demand access to their advisors.

• Action Step: Invest in user-friendly technology, such as budgeting tools, goal trackers, and investment dashboards. Provide virtual meeting options and ensure your website and apps are mobile-optimized.

2. Educate, Don’t Just Advise
   Millennials and Gen Z value education. They want to understand why financial decisions are being made and how they align with their goals. Advisors who offer educational resources stand out as partners rather than just service providers.

• Action Step: Develop blogs, webinars, or social media content on topics like student loan repayment strategies, sustainable investing, or building a first-time budget.

3. Focus on Financial Wellness
   These generations view wealth as a tool for well-being rather than an end goal. Financial wellness, including managing debt, planning for life milestones, and achieving a work-life balance, is often a higher priority than maximizing returns.

• Action Step: Incorporate financial coaching into your services. Help clients build healthy financial habits, such as saving for emergencies or managing discretionary spending.

4. Emphasize ESG and Impact Investing
   Sustainability and social responsibility are at the core of many Millennials’ and Gen Z’s financial decisions. Advisors must be well-versed in Environmental, Social, and Governance (ESG) investing to appeal to these clients.

• Action Step: Build expertise in ESG investment options and offer clear, transparent reporting on how portfolios align with clients’ values.

5. Build Trust Through Transparency
   Younger clients are skeptical of traditional financial institutions and appreciate honesty and authenticity. They value advisors who are transparent about fees, conflicts of interest, and the rationale behind investment choices.

• Action Step: Offer clear, upfront fee structures and proactively discuss how your services benefit clients.

6. Address Intergenerational Wealth Planning
   Younger generations often share financial responsibilities with their families, whether supporting parents, siblings, or children. Advisors must be prepared to handle complex, multigenerational financial dynamics.

• Action Step: Create family-focused planning sessions that incorporate generational needs, such as inheritance strategies or funding elder care.

Adapting to Their Financial Journey

Millennials and Gen Z are at varying stages of their financial journeys, requiring a tailored approach. For example:

• Early Career Clients: Focus on debt management, budgeting, and building an emergency fund.
• Mid-Career Clients: Prioritize homeownership, retirement savings, and family planning.
• Entrepreneurs: Offer advice on business planning, tax strategies, and exit planning.

By aligning your services with their life stages, you can meet them where they are and build long-term relationships.

Opportunities in the Generational Shift

Advisors who engage younger generations now will gain a competitive advantage as this demographic accumulates wealth. Building trust early ensures loyalty, positioning you as their advisor not only for today but for decades to come.

Incorporating their priorities—technology, education, sustainability, and financial wellness—into your practice will enable you to resonate with Millennials and Gen Z. By understanding their values and customizing your approach, you can create a strong foundation for success in this generational wealth shift.

Looking Ahead

As Millennials and Gen Z become core clients, financial advisors must embrace change. Those who adapt to the preferences and values of these tech-savvy, purpose-driven generations will secure their relevance and grow their practices. The generational wealth transfer isn’t just a challenge—it’s one of the biggest opportunities the industry has ever seen.