Millennials are becoming more established in their careers, but they’re still not on the radar of most U.S. advisors, says new research from the Principal Financial Group.
After surveying more than 600 advisors across the U.S., the group finds only 18% are targeting Gen Y clients. That’s because more than half (57%) prefer a new client have assets of more than $250,000, which means they’re primarily serving Baby Boomers (64%), wealthy investors (64%) and business owners (62%).
Read: Don’t discount Gen Y
In fact, only one-third of Americans currently work with financial professionals.
So what advisors need to realize is “Millennials are in [the] growing phase of their careers and income potentials,” says Tim Minard, senior vice president of distribution at Principal Financial Group.
Another problem is Gen Y investors aren’t seeking help. They’re holding back due to fees and costs (29%), fear of market and economic declines (16%) and the desire to handle their own portfolios (10%), according to the advisors surveyed.
But young investors need help, concede the advisors, since many are living beyond their means (22%) and not saving enough (15%).
“One of the biggest challenges advisors face is helping clients catch up when they didn’t start saving for retirement in the early years of their careers,” says Minard.