Millennials aren’t the 20-something hipsters obsessed with avo-toast and Instagrammable experiences you think they are. In fact, this generation born between 1981 and 1996 is knocking on the door of middle age.
Results from the 2021 Natixis Global Survey of Individual Investors reveal how Millennials are changing. They’re getting married. Starting families. Building careers, growing businesses and running global corporations. Focused on Millennials with $100,000+ in investable assets, this report explores how, with new responsibilities, new opportunities, and a new financial reality, they’re setting a new standard for investing.
1. Algorithms can’t solve every financial problem
Don’t assume the digital generation will automatically settle for robo-advice. They’re actually more traditional than you might think. Our survey shows that 40% of Millennials choose in-person advice, while only 7% rely on automated advice.
2. Risk is real when there’s more on the line
While Millennials report that they’re comfortable with more investment risk, that may not be true when the rubber hits the road. Markets have been booming for the last 10 years, and Millennials expect investment returns of 16.3% above inflation. Given that, they may find themselves overexposed to portfolio risk – and get caught by surprise when markets get rocky.
3. You don’t have to sell out to be a capitalist
When Millennials think sustainable investing, they want to change the world – but they also want returns. They think ESG (environmental, social and governance) is a better way to invest, one that creates better opportunities. But while many are interested in ESG investing, 41% say they need more information before they commit.
4. Retirement feels a lot closer at 40
Millennials have saved a lot, and they’re feeling confident. And rightfully so. Despite this, they’re still worried about everything from inflation to how long they’ll be able to hold their job. In fact, 48% of high net worth Millennials say “it’ll take a miracle” to retire securely.
5. Pandemic habits are reminders of the financial basics
The pandemic has Millennials reevaluating their financial behavior and habits. In fact, 22% experienced a serious financial setback as a result of it. From keeping spending in check to creating an estate plan, they were reminded of fundamental lessons in savings and investing.
would take safety
that passive funds
are less risky
failed to see
goals is a risk
want their advisor
to help them
trust social media
are concerned high levels
of public debt will
result in reduced benefits
want to see analysis
of ESG factors alongside
As Millennials approach middle age, they’re facing the same challenges as the generations that came before them, but they’re approaching them differently. As they look to their future, they’re finding their own footing amid new responsibilities and opportunities, and are ultimately discovering their own truths about money and investing.
The data shown represents the opinion of those surveyed, and may change based on market and other conditions. It should not be construed as investment advice.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of May 2022 and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted, and actual results may vary.
Sustainable investing focuses on investments in companies that relate to certain sustainable development themes and demonstrate adherence to environmental, social and governance (ESG) practices; therefore the universe of investments may be limited and investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. This could have a negative impact on an investor's overall performance depending on whether such investments are in or out of favor.
Not all affiliated investment managers integrate ESG considerations into decision-making to the same extent. Investors should always review the offering documents on im.natixis.com before investing in any fund or strategy to fully understand the methods and extent an investment manager incorporated ESG factors into their investment and voting decisions.
All investing involves risk, including the risk of loss. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.
Natixis Distribution, LLC is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.