Millennials aren’t the 20-something hipsters obsessed with avo-toast and Instagramable 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.

72^%

would take safety
over investment
performance

66^%

incorrectly believe
that passive funds
are less risky

89^%

failed to see
missing their
goals is a risk

40^%

want their advisor
to help them
navigate volatility

24^%

trust social media
when making
investment decisions

60^%

say volatility
undermines their
financial goals

72^%

are concerned high levels
of public debt will
result in reduced benefits

52^%

want to see analysis
of ESG factors alongside
fundamental factors

 

 

 

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.