Tech-savvy millennials still prefer real people as financial advisers, study says
- As tech savvy as millennials are, they still want to talk finances with a real human being over a robo-adviser, says LendEDU. An online marketplace for student loan refinancing, LendEDU polled 502 millennials, age 18 to 34. All respondents said they were saving for retirement, and robo-advisers' popularity has grown substantially.
- But when asked who would manage their money best and who would make mistakes in doing so, LendEDU says 51.6% of millennials said a robo-adviser is more likely to make errors versus 48.4% who thought a human adviser would be more likely to make mistakes.
- The LendEDU survey also found that most millennials (62.4%) think robo-advisers are more likely to lose their money. Only 37.7% of respondents thought a traditional adviser would do so.
Robo-advisers have garnered substantial attention as of late for their affordability and accessibility. But as in many cases of automation, it's hard to completely replicate the human touch.
Millennials are proving to be as savvy about saving for retirement as they are about technology. The largest generation in the workplace is reportedly the biggest savers when it comes to retirement. The 2016 Willis Towers Watson's Global Benefits Attitudes Survey found that millennials are willing to pay more for secure retirement benefits.
Although a 2016 Financial Finesse study said women millennials were 28% behind their male counterparts in saving for retirement, the generation as a whole is surpassing boomers' savings levels. Employee Benefits Adviser reported in late 2016 that millennials are out-saving boomers, who got caught in the transition employers have made from defined benefits plans to defined contribution plans, such as 401ks.
Millennials have expressed the desire to learn more from their employers about investing for retirement. And because 35% of millennials are willing to turn down a job offer because of inadequate benefits, according to an Anthem survey, employers who accommodate them might have an edge in recruiting and retaining these young workers.