Gen X, Gen Y … Gen D?

Have you heard of Generation D? I didn’t think so. But according to a recent report  from consulting firm Accenture, Generation D is an emerging and important investor segment of the market.

Cyril Tuohy of InsuranceNewsNet recently published some details of Generation D saying that both the financial crisis of 2008 and the rise of social media as a means to access investment advice have given rise to a different kind of investor, one that is skeptical of financial advisors.

So, who is Generation D? Generation D is not defined by traditional generational divisions but by their behavior. They are 75 million strong representing a cross-section of so-called Millennials (26%), Generation Xers (48%) and the Baby Boomers (25%).

Members of Generation D are less likely to view advisors as a trusted resource for investment advice than previous generations, the Accenture survey found. For example, a total of 59% of Gen D members actively sought advice recently but only 40% looked to their financial advisor for guidance.

Generation D represents 44% of the U.S. population with nearly $27 trillion in assets that will be passed on to heirs in the coming decades, but they are skeptical of the markets. Accenture was surprised at how conservative the Millennials are and how they equate investing in the market to gambling.

Millennials the Most Skeptical

Generation D skepticism toward financial institutions is most prevalent among the Millennials, with this group of 21- to 30-year-olds seeking information across multiple channels to confirm or corroborate investment advice.

While 71% of Generation D Millennials are currently investing, only 22% do so through an advisor, the survey found, and as many as 28% of Millennials would not take a financial advisor’s advice without first consulting another source.

Gen Xers, meanwhile, are as likely to be self-directed investors as they are to use a dedicated advisor, while Boomers still value a personal relationship with their advisors, the survey found.

While the LIFE Foundation does not deal with pure financial products, we do consider ourselves experts in the area of life insurance and related products. Our goal is to make these products easier to understand through digital resources, social media, motivational videos and blogs.

According to Accenture, members of Generation D are often more conservative and risk averse than many advisors give them credit for, and they are going to expect digital, online and mobile channels to be “seamlessly woven into the overall customer experience,” the report said.

The LIFE Foundation has anticipated these needs and provides the financial community a wealth of digital resources for consumers and for agents and advisors to use with these skeptical investors in the new digital world.

Monday, April 29th, 2013 |  | Comments (4) |

facebook twitter linkedin mailto google

Mystic Shore Insurance assists individuals and businesses in Connecticut and Rhode Island in choosing appropriate coverage plans. This firm brokers disability, funeral trusts and life insurance. The company also helps businesses draft employee retirement packages.

Hours: Mon – Fri, 8am – 6pm; Sat, 9am – noon; Sun, closed

Founding Date: Jan 2, 1998

Specialties (insurance): Life, Annuities

Type (insurance): Business, Personal

Phone: (860) 984-6762

Email: mysticshoreinsurance@gmail.com

LinkedIn: www.linkedin.com/in/willmorrissey/

Facebook:  www.fb.com/mysticshoreinsurance

Website:  www.mysticshore.wordpress.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s