Millennials — America’s largest generation with approximately 72.24 million members — have a unique financial mindset. Although we have seen them historically lag behind other older generations in reaching traditional financial milestones like buying a house and saving for retirement, they are entering a phase of future planning — and it’s time to pay attention. As the oldest millennials enter their early forties, our Logica® Future of Money Study shows they are focusing on taking charge of their finances in different ways than previous generations.
According to Wealth Management, millennials are laser-focused on financial security. They have lived through multiple periods of huge upheaval, like the 2008 financial crisis, the pandemic, tech crashes in 2022 and a long period of inflation more recently. Using the right consumer research, companies can truly engage millennials with the right financial products and services. Understanding their unique experiences and evolving priorities, demonstrating empathy and adaptability, and leading with millennials’ tech-forward preferences will be key in reaching them.
Technology’s Rising Role with Millennials and Money
Millennials are well-informed and tech-savvy investors — changing and emerging technologies are significantly impacting the future of money among this generation. Our study shows that 29% of Americans from all generations believe technology will have the biggest impact on investing in the next five years. Millennials, in particular, have a strong focus on technology and investing, with significant growth in crypto investment interest (increasing from 49% to 64% year over year). Millennials are very comfortable using technology for investing strategies, including using robo-advisors, taking advantage of online brokerages and utilizing AI — as well as this increasing investment in cryptocurrency.
We can expect millennials to demand innovative technology to help them manage their finances, be early adopters of it, and to be heavy users and advocates of this technology. Financial firms can look to millennials to help them develop and refine financial technology offerings, using the right consumer research to gain this understanding. Additionally, millennials can become advocates for new technology developments to their peers. These peer recommendations will help companies in spreading the word and driving acquisition and engagement. For financial companies looking to drive growth with this biggest generation, technology will be a foundational part of growth strategy.
Millennials Seek Personal Financial Advice
Despite the increasing reliance on technology for investing and saving, many still seek personal financial planning support from employers and financial institutions, and are turning to financial advisors. Our Future of Money Study underscores that nothing replaces trusted, personal advice — especially during uncertain economic times. This is particularly true for millennials, who are diligently working to manage their finances and plan for the future. The various financial crises they’ve lived through also impact their desire for trusted financial advice. According to Dow Jones, advisors must offer personalized, credible, and frequent communication to meet evolving millennial investor needs and build that crucial trust.
While many seek help in managing their money, millennials are the most likely to seek advice as well. Our research shows that 71% of millennials are looking for help managing their money right now, compared to 63% of the general population. Additionally, 75% of millennials seek help choosing investment options, versus 62% of the general population. In fact, across 13 different attributes, Millennials are often most likely to be looking for financial advice. So this generation is definitely leading the pack when it comes to personal financial advising needs.
Looking for more on millennial banking:
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Millennials Need Help To Reach Retirement Goals
Millennials also are seeking help reaching retirement and other financial goals, not only from advisors but also from employers. Millennials are in important phases of their professional lives as they look to advance in their careers and enter peak earning years. Employers are critical to providing support to help them manage their financial lives — providing them with access to advice and technology on many fronts, including retirement planning.
Insights gathered in our latest study reveal varying levels of optimism and concern among Americans regarding their financial futures, with widespread financial strain preventing many from saving for retirement. More than half of millennials plan to continue working full-time or part-time after retirement. This data highlights the need for enhanced financial programs in this area from employers.
The percentage of working Americans who feel it is important for employers to offer financial programs to help them manage their finances has significantly increased in the past six months — from 75% in fall 2023 to 81% this spring. This need is particularly pronounced among younger generations. More than nine in ten (91%) of Gen Z and 87% of millennials say it’s important for employers to offer financial programs that help them manage their finances.
Financial firms that provide retirement accounts, HSAs, insurance and other types of benefits have an opportunity to engage millennials and gain loyalty by providing tech platforms, coupled with human advice, to help them manage their money efficiently and holistically.
Understanding Millennials Vital to Product & Service Development
Millennials stand at a financial crossroads and are coming to the forefront as a generation to watch as they begin to prioritize money management and take care of their financial futures. What you can do to make sure you’re ready to work with millennials:
- Understand your customer and prospect base and how millennials are represented in it.
- Identify the detailed needs of these millennials and how you can meet them.
- Examine your technology, products and services to identify benefits and gaps to refine and improve them to meet the needs of millennials.
Deeply understanding where millennials have been and where they are aiming to go, will help financial institutions develop services and products that resonate, offer personalized advice and leverage technology to meet their evolving needs. With a proactive approach to financial planning and a strong reliance on trusted guidance, millennials are poised to shape the future of financial strategies and services.
The Logica Research Future of Money Study is a twice-yearly research report that offers a detailed 360-degree snapshot of the current consumer money mindset. The online study has been running since 2017 and is conducted among 1,000 U.S. adults and an augment of 200 older Gen Zers (16-25 years old).
Lilah Raynor, CEO & Founder, Logica Research As founder of Logica Research, Lilah is driven to help organizations use research to improve people’s lives and drive business growth. She is a speaker and writer on the Future of Money, customer engagement and insights communication. Lilah is a member of Women in Research and Logica® is a certified women-owned business. Logica excels in creating customized research solutions that spark brand engagement, launch products and services, and establish thought leadership programs. The company’s ongoing Logica® Future of Money Study highlights the consumer mindset around how we make, spend, save, and invest.