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Millennials want to work with Financial Advisors more than 'robo-advisors'

Optimize Team June 09, 2022

Millennials as a generation are known to be well-versed in technology, social media, and the way these platforms are integrated into society. A bulk of this generation is entering the phase of life where they have multiple sources of income, getting married, buying houses, and preparing to start families of their own. All of these milestones require careful planning and handling of finances, and millennials are turning away from the online world of “robo-advisors”. A handful of millennials have come to the realization that when it comes to money, sometimes it is better to go the old school route. Findings suggest that approximately 40% of millennials are moving towards traditional financial advisors, whereas less than 10% are opting for advice generated by robo-advisors and online financial algorithms.


Millennials trust real advisors partly due to the fact that these planners, more often than not, have experienced somewhat similar facets of life that millennials are currently facing. These advisors have built careers around mortgages, RRSPs, TFSAs, retirement planning, and most importantly, they understand that financial situations are completely different for every individual that walks into their office. 


In North America, it is reported that 72% of millennials use real advisors. As a group, they have witnessed the global economy being both kind and vicious investors. As they continue to build wealth, millennials understand the value of financial health, savings, and retirement planning. With their top risks being associated with volatility, professionally catered advice from advisors is becoming invaluable to millennials. ESG investing is becoming an increasingly popular movement among millennials. Despite this trend, ESG investing is a relatively new fad, one that requires a lot of attention and research in order to provide viable returns for clients. Millennials are also willing to weigh their morality and ethical beliefs against their decisions and investments. 63% of millennials agree that they need to use their wealth to help change the issues present in their society.


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