Much has been written about millennials and their attitudes to finance but research carried out by Standard Life reveals more diversity than you might expect. Susie Logan, Standard Life Brand and Marketing Director, discusses.
Much has been written about millennials and their attitudes to finance but research carried out by Standard Life reveals more diversity than you might expect. Susie Logan, Standard Life Brand and Marketing Director, discusses.
Standard Life recently carried out research on each generation’s attitude to personal finance to gain more insight about what today’s clients and tomorrow’s clients need from financial advice.
Our research focused on the Baby Boomers, Generation X and Generation Y, also known as ‘millennials’.
What is most striking from our findings is that Generation Y is a very diverse group and can be categorised into three segments:
- driven
- stretched
- carefree
We found that each of the groups is focused on short-term goals. This is especially true of the ‘carefree’, who prefer travel and experiences to material possessions. The stretched also want to travel, but they also want material things, like owning a car. For the driven, their main goal is acquiring their first home and getting on in their career.
Generation X is the commitment-heavy generation
This generation is keen to know more about saving for the long term, but don’t know where to go for advice.
Much of their focus is on their children, but they also have moments that matter around divorce, house buying, employment – and wanting to trade up as they get on in life.
And this is the sandwich generation as aging parents are also a concern.
Baby Boomers recognise they are financially at their peak
Insight around the Baby Boomers revealed that they know they are the lucky generation with DB pensions, for example.
However, the concerns they do have focus on outstanding mortgage commitments and the costs of education.
Each of the generations require a different approach
Our findings uncovered the fact that each of the generation’s world view can differ from what might be assumed, especially Generation Y, the diverse segment, from the driven to the carefree.
And although Baby Boomers recognise they’re in a good place, they need help to maximise the money they have. Generation X is an engaged generation too but they’re keen to know more about long-term saving.
Three very different generations, each with very different requirements needed from financial advice.
Standard Life accepts no responsibility for advice that may be formulated on the basis of this information.
The views expressed in this blog should not be regarded as financial advice.
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