Recent Goldman Sachs research has found that millennials, the current generation aged between 15 and 35 years, have the lowest share of the median income in history and started adult life with the highest levels of debt. Under these circumstances it is difficult to draw millennials to the wealth management industry. The Wealth Management Association (WMA) launched its millennial forum on February 2 to address this. The forum was attended by millennials nominated by WMA's member firms such as Fidelity and Barclays. The key issues that were debated were how to develop the next generation of wealth management leaders, what ideas will contribute to the continued success of wealth management and attract the new generations.
WMA Chief Executive, Liz Field comments: "We are delighted to announce the launch of our Millennial Forum which is part of the WMA research strategy and supported by EY and IRESS.
This exciting new initiative is designed to generate new ideas for specific challenges that impact the continued success of wealth management industry and to help to develop the next generation of wealth leaders. The forum will meet 3 times in coming months to debate these key issues. The program and discussion will be facilitated by WMA and evolve through the participation and feedback of the forum members."
During the forum attendees had the opportunity to discuss what companies can do to engage more with millennials. Indeed, research reveals that 53% of 26-35 year olds have no pension plan and the number is 65% for 18-25 year olds. The problem is that the millennials are one of the least trusting and financially literate generations when it comes to investment UBS research reveals, it is therefore important for firms to know how to engage with them. To this end, getting more millennials to work in Wealth management is key for the success of firms in that demographic.
Simon New, Group Executive, Strategy at IRESS commented: "We're delighted to support the next generation of wealth management talent and look forward to helping them shape their ideas and thinking."
But the best thing we could do to ensure that young Britons enjoy a secure existence would be to educate them on what options are available to them and instil a culture of saving and investment. In this respect the WMA has taken a lead by nurturing the next generation of wealth managers and harnessing their ideas to build a successful future for the industry and make the most of the immense opportunities the 21st Century beholds.