Although Millennial retirement savers are nowhere near retirement age, they already represent the biggest opportunity for rollover business, according to a recent study. With many advisors overlooking this generation, those who focus on Millennials have the opportunity to significantly grow their practice.
The opportunity for advisors
With potential increases in labor force participation and salaries, Millennials’ financial assets are projected to grow from $1.4 trillion in 2015 to $11.3 trillion in 2030, a compound annual growth rate of nearly 15 percent. Millennials also boast the second-highest share of home purchases by value, in addition to having respectable savings habits. In fact, they allocate about 8 percent of their income to workplace retirement savings accounts such as 401(k)s.
According to the study, nearly eight in ten Millennials expect to roll over funds in the next 12 months (79%), making them the easiest rollover IRA candidate. And, of course, Millennials — defined as those 37 or younger — have a long time horizon to continue building assets before retirement.
How advisors can connect
With Millennials’ heavy use of social media, having a strong LinkedIn and Facebook presence is crucial for advisors who want to grow their business with this segment. According to the Putnam Social Advisor Survey, nearly half of the prospects that advisors identified through social media were squarely in the Millennial demographic. Try these LinkedIn prospecting strategies:
Alumni connections are one of the strongest, most effective networking tactics. Search for your alma mater or nearby universities and use the alumni tool to find people that attended college from 2003 and 2015, then filter your results to refine and identify prospects.
Remember to personalize your invitation to connect and provide context to your prospect.
If you are using LinkedIn’s Sales Navigator product, you can identify high-earning Millennials by searching for those in senior positions with 6–10 years of work experience.
You can further refine your search by focusing on those who have changed jobs in the past 90 days.
Challenge yourself to incorporate our 10-minute LinkedIn routine in your practice. To learn more, contact your Putnam consultant or call us at 800-354-4000.