Young, rich, misunderstood: Five ways you must adapt for younger HNWIs

Forget the ‘young and dumb’ stereotype, the rich under 40s are likely to be fussier than their parents about who they take financial advice from, and what they expect from an adviser, according to the latest research.

A little over a quarter of Europe’s high net-worth individuals (HNWIs) under the age of 40 believe recommendations from their wealth management firm have not been in line with their risk tolerance, according to the latest research.

This finding – which compares to a global average of 17% – is drawn from Generation sceptic: Meeting the millennial standard, the third report in the 2015 Futurewealth series by NPG Wealth Management, SEI and Scorpio Partnership.

The research takes into account the views of 3,113 investors from around the world with an average net worth of $2.7m.

It suggested the youngest in that group are a demanding bunch.

Here are five things about the rich under 40s you need to know if you want them as clients:


1) This generation is less happy with the services provided by their wealth management firm than their older peers.

2) In Europe, a fifth of under 40s said their adviser had failed to properly explain how investment performance has been generated.

3) Rich European under 40s are also unhappy about a lack of explanation on how investment strategies can meet their financial goals, with a quarter stating this outcome had not been met.

4) Younger clients are significantly more focussed on security processes, with 30% of European under 40s citing this as an important influencer over their trust in a wealth management firm, compared to 20% of all respondents.

5) The under 40s place more emphasis on their adviser’s profile on a professional networking site, as well as the credentials supplied by the business – so it’s time to get a LinkedIn profile.


“Wealth management firms need to be mindful that younger clients are not as satisfied about the service delivery as their predecessors” said Marc Stevens, CEO of NPG Wealth Management.

“The implication is that institutions will need to work harder to understand the dynamics of this client group to ensure that the quality of outcomes does not slip.

“In particular, younger clients are much more information-hungry than their predecessors and require both education and mentoring.”

Further reading: Why advisers can’t ignore younger workers


Categories: Better Business|Investment

Topics: Next generation|Under 40s|Financial advice

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Thursday, July 30th, 2015 EN

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