Connecting with the next generation of clients

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Connecting with the next generation of clients

Building relationships with the next generation of clients is good business that can benefit everyone concerned. For you, it鈥檚 a chance to establish enduring partnerships that span generations. For clients, it鈥檚 an opportunity to access personalized guidance and support.
But connecting with these prospective clients isn鈥檛 without challenges. Despite the unique financial hurdles Gen Xers and millennials face, many are hesitant to seek professional support. According to , have not done any retirement planning. And only 19% of children use the same financial professional as their parents, from marketing firm Cerulli Associates.

Financial professionals can leverage their existing client relationships with parents as a foundation for reaching out to the next generation. Not only can they offer support that aligns with multigenerational goals, but they can also proactively address the unique pain points that millennials and Gen Xers may face as they build their financial futures.

Financial interdependence: natural touchpoints to engage

Many Gen Xers and millennials have some elements of their financial picture intertwined with their parents. An estimated . Major life milestones 鈥� such as estate planning, homeownership, and paying for college 鈥� are natural moments to build connections between generations.

Balancing today鈥檚 needs with tomorrow鈥檚 goals

For Gen Xers and millennials, building wealth often means balancing immediate financial pressures with long-term planning. While some members of these generations may appear financially secure on paper due to inherited assets or investment portfolios, liquidity challenges are common.

These generations also face unique demographics. For instance, according to a , nearly one-third of women and men ages 40 to 54 are unpartnered. This means they may be facing more financial challenges, like solo financial decision-making, than their parents may have faced at the same age.

Financial professionals can help address these generations鈥� needs by offering services and solutions such as:

Comprehensive financial wellness programs: Providing education and tools on budgeting, saving, and building emergency funds.
Education funding planning and education: Assisting with a 529 plan strategy, as well as other ways to manage costs for children鈥檚 education.
Holistic retirement planning: Designing comprehensive strategies that blend traditional savings vehicles like 401(k)s and IRAs with guaranteed income solutions such as annuities.
Family-focused financial support: Offering tailored financial guidance for significant life events, such as planning for fertility treatments or adoption costs, and managing financial transitions during divorce.
Flexible fee structures: This can make professional advice more accessible for those who may not yet be ready for a traditional AUM-based relationship.

Building trust through personalized engagement

The next generation of clients often turns to social media and digital platforms for financial advice. Financial professionals can augment the DIY advice this generation already receives by providing complementary support that鈥檚 tailored to an individual鈥檚 specific needs.

Some of the ways they can do this include:

Leveraging personalized digital tools: Interactive dashboards and virtual planning platforms help clients track their progress in real time.
Adopting hybrid communication models: Combining digital interactions with in-person touchpoints for convenience and flexibility.
Focusing on financial wellness: Hosting workshops on financial literacy or providing resources for common financial concerns can offer low-touch ways to engage.

Connecting across generations

Successfully engaging the next generation requires a strategic approach. By leveraging natural touchpoints, helping address the balance of immediate and future goals, and embracing technology-driven tools, financial professionals can build trust and establish enduring relationships with this emerging client base.

When done right, the result can be beneficial for all: Financial professionals have the opportunity to grow their practice, while clients can gain the confidence and clarity to achieve the financial goals that matter to them and their family鈥攏ow and in the future.