By 2028, millennials will inherit almost 1.1 trillion dollars from their baby boomer parents.1
The future of wealth
Millennials, also known as Generation Y, are generally defined as being born between the early 80s and late 90s. Making up 27% of the population, they represent the largest generation in Canada2.
Surrounded by negative stereotypes and known for paving their own path when it comes to family, career and their impact on society, the millennial market is often overlooked and underserved. These negative perceptions are creating missed opportunities for you, your business and millennials.
We are in the midst of the largest wealth transfer in Canadian history. By 2028, millennials will inherit almost 1.1 trillion dollars from their baby boomer parents and will be 5X richer than they are today1. Unfortunately, 66% of children leave their parent’s advisor after they receive an inheritance and this number increases to 95% following the loss of both parents.3
If you have not asked for an introduction to the next generation, or begun adapting your business practices to embrace the millennial market, the time is now.
Millennials are more valuable than you think. They typically have a higher risk tolerance and are engaged and eager to learn. With the right practices in place, including a strong digital presence, millennials will remain loyal to one advisor and can become brand ambassadors and referral advocates. In fact, over twice as many millennials will make a referral compared to boomers4.
1 Strategic Insights, Household Balance Sheet Report, 2018
2 Stat Can, Table: 17-10-0005-01 (formerly CANSIM 051-0001), 2020
3 Preparing for the intergenerational wealth transfer, Investment Executive, May 24 2019
4 Source: JD Power, 2020-canada-full-service-investor-satisfaction-study, 2020