How Will Millennials Most Influence Finance?
Geographical differences aside, this generation shares some traits. We asked CFA Institute Financial NewsBrief readers (in an unscientific poll) which factors would matter most to finance over the next five to 10 years. A total of 558 readers responded, and their top answer (44%) was that the tech-savvy nature of millennials would have the greatest effect on the industry.
One in five survey respondents (20%) thought that the longer working lives and changing perspectives on retirement of millennials would have the greatest effect. Retirement is a central goal of the investment industry, and the industry is structured around $40 trillion in pension assets. Retirement is becoming a less meaningful concept, however, as the next generation has less confidence in retirement promises — and they have been offered fewer promises. Managing lifetime wealth is a more appropriate goal, recognizing that people have financial needs throughout their lives. People will be working longer, and pension funds need to find creative ways to engage all beneficiaries.
The remaining 18% of poll respondents believe it is too early to know the potential effect, especially as millennials are known to be a bit slower to become financially independent. The Fidelity Investments Millennial Money Survey (which looks at a narrower, older range of 25–35 years) found that 47% have received financial assistance from their parents since they have “been on their own.”
Read more in Next Generation Investors: How Millennials Will Influence Finance.
