Planning for Next Gen: Millennials' Attitudes, Values and Implications for Financial Planning
New research from The Decision Lab, funded by the FP Canada Research Foundation™, unveils insights financial planners can use to better engage with millennials
TORONTO, Nov. 9, 2021 /CNW/ - Millennials are in the process of profoundly reshaping financial planning according to a new report, which sheds light on the attitudes, perspectives and values of the cohort that accounts for more than 25% of Canada's population.
"Millennials don't just see money as a store of economic value, they see it as an expression of their ideals—such as inclusion & diversity, social justice and climate change. And there's a real opportunity for financial professionals to better position themselves and adapt their service offerings," says Dr. Brooke Struck, Research Director, at The Decision Lab, who authored Values & Priorities of Millennials in Canada, which looks at attitudes and values of Canadians born between 1981 and 1995.
"We're excited to launch this research, which gives financial planners practical insights for engaging with this significant cohort both directly, as clients, and indirectly, as planners work with their parents," said Joan Yudelson, Executive Director, FP Canada Research Foundation.
"For financial planners the secret of engaging with millennials lies in establishing trust, strategically tailoring their services and being more strategic about their digital touch points," said Dr. Struck. This is particularly important in the context of the largest intergenerational wealth transfer that is underway, with millennials on track to receive large inheritances.
As a generation, millennials are very well educated, but many also carry large debt loads and are part of an economy that is seeing a rise in precarious employment. These factors, the report says, have shaped their view of what success is, which is very different from Gen X, or Boomers who came before them.
Financial planners have an opportunity to help millennials build a safety net, given short-term or gig work typically doesn't give them health benefits or access to workplace pension plans. As well, previously normal expectations around home ownership, investments and retirement, may differ for millennials compared to prior generations and planners must focus on supporting their clients' priorities.
"A lot of times, with millennials, the focus is on helping them find stability in the near-term, reducing debt and building a buffer for potential gaps in income," said Cindy Marques, a CFP® professional and CEO of MakeCents, who specializes in working with millennial clients.
The goal of the research, which was funded by the FP Canada Research Foundation, is to help financial planners better engage with millennials and build the trust required to maintain them as clients for the long term.
To read the entire report, visit the Research & Resources page on the Foundation website.
About The Decision Lab
The Decision Lab is a social enterprise that leverages insights from the cutting edge of behavioral science to tackle some of society's most pressing challenges. Each of us makes 35,000 decisions every day, often in choice environments that do not account for the biases and heuristics that guide human cognition. TDL designs tailored solutions for complex problems across a wide range of industries, facilitating catalytic change through pragmatic, evidence-based interventions. Through our direct work with clients and our online publication, TDL is working to empower individuals and organizations around the world by democratizing access to applied behavioral science. By closing the gap between theory and practice, we're helping people to access their full potential, building scalable solutions that create lasting impact. Learn more at www.thedecisionlab.com.
About FP Canada
A national professional body working in the public interest, FP Canada is dedicated to championing better financial wellness for all Canadians by leading the advancement of professional financial planning in Canada. FP Canada is the leading certification and enforcement body for professional financial planners in Canada. There are about 17,000 Certified Financial Planner® professionals and about 1,900 Qualified Associate Financial Planner™ professionals, who meet FP Canada's rigorous professional and ethical standards. Learn more at FPCanada.ca.
About FP Canada Research Foundation
The FP Canada Research Foundation, an independent registered charity, is dedicated to funding, promoting and disseminating financial planning research to enhance the wellbeing of all Canadians. The Foundation is committed to technical research that examines and challenges current practices in financial planning, behavioural research that examines the impact of human behaviour on effective financial planning and societal research that examines the benefits of financial planning on society as a whole. To learn more, visit FPCanadaResearchFoundation.ca.
SOURCE FP Canada
For media inquiries, please contact: Satish Sarangarajan, FP Canada, [email protected], 416-953-1020
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