More than 8-in-10 (83%) US high net worth millennials would choose to leave a financial adviser if they were not knowledgeable about ESG, according to RBC Wealth Management.
The wealth manager surveyed 1,000 HNW and high earning 25- to 40-year-olds and found 92% believe it is important that their current or future financial adviser is knowledgeable about how to utilise ESG data while recommending an investment.
Some 85% said it’s important to consider ESG data as part of their investment decisions, and that these investments are an integral part of their strategy.
Kent McClanahan, vice president of responsible investing at RBC Wealth Management – US, said: “Millennials’ strong appetite for ESG creates an opportunity for advisers to incorporate ESG data into their investment and wealth planning, as well as advise and educate the younger generation of investors on how to invest with purpose.”
Juggling responsibilities
The survey also found six-in-10 (59%) US millennials reported difficulty finding time to manage their finances while juggling multiple responsibilities, such as buying a home, starting a family, caring for aging parents and saving for their children’s education.
Another challenge is a lack of knowledge, 72% said that after paying off debt, saving for an emergency fund, and maxing out their 401(k), they are unsure what to do next.
The main goal of those surveyed is establishing long-term security by investing and saving, with 75% saying they want the same things as their parents, but they are simply unaffordable.
Some 38% said investing in the stock market is their top financial goal, compared to 33% who prioritise saving for retirement. More than one-quarter (27%) said their top financial goal is starting a company.
Lastly, 84% think frequently about their financial security, but many are unsure of what they need to do to attain it.
Angie O’Leary, head of wealth planning at RBC Wealth Management – US, added: “Millennials have an entrepreneurial mind-set, and are looking at ways to create other sources of income through business ownership, investment property or a side-hustle.
“Competing responsibilities and goals make a personalised wealth plan especially important for millennials, with a focus not necessarily on retirement planning, but instead on planning for their specific life goals, including entrepreneurial endeavours.”
