Many people think the members of Generation Y are entitled know-it-alls, always connected to technology, who would prefer to live in the moment rather than think of the future. However, recent research from ING Direct suggests we probably don’t know as much about Generation Y as we think. The finance group’s study found millennials want to secure their financial futures and they’re open to seeking professional advice to do it.
Thirty-four percent of young people say they’re confident in their superannuation plan, compared to just 17 percent of Gen Xers. This comes despite their ambitious retirement dreams. While many Generation Xers and Baby Boomers believe they’ll need to work well past the average retirement age of 63, a third of millennials plan to retire before the age of 40. They also believe they’ll outspend the Association of Superannuation Funds of Australia Retirement Standard benchmark for a comfortable retirement by roughly $260 a week.
Generation Y certainly don’t believe they know it all, especially when it comes to financial matters. Just a quarter of millennials want to DIY their finances. Thirty-two percent prefer to delegate all their financial decisions to a financial adviser, while the remaining 43 percent would prefer to use a combination of financial advice and their own research.
While millennials may spend more time using digital devices than any other generation, four out of five young people would prefer to engage with a financial expert face-to-face. While these young people may seek out online information, it’s likely to only supplement the in-person information they receive. Social media also isn’t the great influencer that you might expect. Just 14 percent would seek out social media recommendations for financial advisers, far less than the 44 percent who would prefer to choose a financial adviser their family members recommend. The members of Gen Y are also more likely to use a financial planner if their parents did.
If you’re a member of Generation Y keen to take control of financial future, we’d love to help you. Call Chase Edwards on 1300 854 833 to arrange your free, no-obligation financial health check to see whether you’re taking the steps you need to take to achieve the retirement you’ve always dreamed of.