Three quarters of Italian Millennial investors want to expand their investment knowledge and nearly a quarter indicate their need for consulting financial has risen in the past 12 months, according to MFS Investment Management’s “Consulting Millennials in the Digital Age” survey. In the survey, which examines the attitudes, perceptions and behaviors of individual Millennial investors in Italy, 30% of respondents said they feel overwhelmed by the different investment options available and that they struggle to look to the future with optimism.
More than80% of the Millennial present in Italy, a group that includes 10 million people born in the early 1980s and mid-1990s, she fears that she will not be able to save enough for retirement and80% he is concerned about generating income from his savings and investments to meet current expenses. Having experienced two financial crises, 68% of Millennials said they fear the negative impact of the Covid-19 pandemic on the economy. Other sources of concern concern public debt (65%) and internal political instability (64%).
The constant problem of unemployment, whose average rate in Italy is 30% against 16% in Europe, has left a mark on their lives. Today, most Italian Millennials live longer with their parents and struggle to achieve financial independence, which very often pushes them to move abroad for work reasons. It is therefore not surprising that two out of three Italian Millennial investors (70%) have admitted that they have postponed, or plan to postpone, at least one important event in their life, such as buying a car (27%), a move ( 20%) and the purchase of their first home (16%) due to their current financial situation.
“The Millennial investors suffered the consequences of the 2008 financial crisis and the eurozone debt crisis, which for many caused employment difficulties, and are now going through another, cruel, setback: the Covid-19 pandemic. In light of all this economic uncertainty, it is no surprise to learn that they have so many fears. However, the fact that so many members of this cohort are thinking ahead and want to take control of their finances is encouraging, “he said. Andrea Baron, Managing Director Italia di MFS Investment Management.
Millennials and financial advisors
The survey results highlight a mismatch between financial advisors e Millennial in relation to the investment objectives of the latter. Probably due to fears for the future, the main goal (36%) of Italian Millennial investors is to generate income from their investments, and less than half of them consider themselves risk tolerant. This is in contrast to consultants’ opinion that Millennials would rather focus on growing wealth and increasing portfolio value (49%).
This misalignment it may be related to the fact that the 56% of the consultants indicated that they are unable to attract young customers or attract only a marginal share, while 9% do not consider this age group at all. Lack of wealth (73%) and adequate business models (24%) are the main reasons why consultants are not dedicated to this generation. “At first glance it might seem that Millennials don’t have large capital; However, we are about to see a huge volume of wealth transfer from Baby Boomers to Generation X and Millennials. The consultants who will benefit over the long term are those willing to engage with Millennials and create a customer experience that meets their needs, ”said Baron.
“This opens a window of opportunity which allows wealth managers such as MFS to help financial advisors bridge the gap with Millennial investors. Millennials are focused on goals, aware of the risks and aiming for retirement. The survey results indicate that consultants need to do more to understand what younger clients can offer, what their needs are and how they can be supported in achieving their long-term goals when they entrust their savings to the markets “, added the manager.
Family heritage
According to the survey, the 60% of investors Millennial have received or are expecting ainheritance. The 63% indicated that he will transfer the money to another consultant professional, lo will spend immediately or no her still what will he do with it. Only less than half of Italian Millennial investors have had family wealth conversations with their advisors, but those who have had these discussions found them very useful. The survey also reveals that Baby Boomers do not like to talk about money with their children and prefer to discuss their wishes shortly before death. “We believe this is an excellent opportunity for financial advisors to step forward and gain new long-term clients, as the study clearly shows that Millennial investors who have received professional advice have found it useful,” concluded Baron.