Financial professionals are constantly looking to expand their client base and help more people properly prepare for the future. In the past few decades, baby boomers were the best group to target for financial planning, because these individuals had money they wanted to save and were interested in the information financial professionals were able to provide. Now, the baby boomer generation is actually entering retirement, and the financial plans they have in place are being put to use. This shift means financial professionals need to target a new audience of consumers to increase their client bases going forward.
The next generation is less equipped for retirement than their predecessors, which means they need the insight and expertise financial professionals can provide.
A preparedness gap
According to a new survey conducted by J.P. Morgan Asset Management, members of Generation X are far less prepared for retirement than boomers were, and this imbalance is unprecedented in American history. The survey discovered that the net worth of the next generation’s households is significantly diminished compared to the net worth of baby boomers 25 years ago. That’s because baby boomers benefited from periods of significant economic growth during their prime earning years, while those in Generation X suffered through the recent economic downturn. Unfortunate economic circumstances made it difficult for these individuals to build their net worth, and they are significantly less prepared for retirement as a result.
This situation is unique because every previous generation has been more prepared for retirement than the generation that preceded it. It’s critical that the younger generation adjust its current savings strategies to properly prepare for the future.
Reaching out to Gen X
To successfully sell to these consumers, financial professionals must offer products that are genuinely useful and easy to understand. These people may not be interested in traditional life insurance policies, according to NerdWallet. Instead, they may want term products that offer increased flexibility. It’s also important to consider how these consumers will research, discover and purchase new life insurance products. The Internet will be an increasingly important part of the life insurance marketplace, and producers who create a compelling online presence will prime their firm for success.
The next generation needs assistance planning for the future, and financial professionals have the expertise needed to help these consumers adequately protect their retirement savings.