Capital Group: Millennials Prefer «Finfluencers» for Advice
While the historic wealth transfer is creating many opportunities for the industry, traditional financial institutions face challengers including social media, according to a report by Capital Group.
More than a quarter (27 percent) of millennial inheritors are more likely to turn to social media and online financial influencers, also known as «finfluencers», for investment advice, according to a study by US asset manager Capital Group. This compares to just 18 percent who prefer financial advisors.
Traditional financial institutions also face challenges in succession planning with 61 percent and 49 percent relying on lawyers and accountants, respectively, to handle related matters. Only 15 percent use financial advisors in this regard.
Underinvested Inheritances
60 percent of wealth holders were unhappy about how they used their inheritance with one-third regretting having underinvested. Only 22 percent of inherited capital is invested in securities or mutual funds and 11 percent in a pension fund.
«Trillions of dollars are estimated to be transferred from Baby Boomers across the US, Europe, and developed Asia to younger generations in coming decades,» commented Guy Henriques, president, Europe and Asia client group at Capital Group. «Millennials and Generation Z are receiving larger inheritances at a younger age and could benefit from a financial adviser’s market insights and long-term investment perspective.»
The study was based on a survey of 600 high net worth individuals (HNWI) conducted by Financial Times Longitude in February and March 2025. The HNWIs had a minimum net worth of $1 million, investable assets between $250,000 and $10 million and received inheritances of $100,000 to $50 million.
