Among people who utilize financial adviser, the average age at which they began the relationship was 38, but younger generations are seeking out experts even earlier, according to the Planning & Progress Study 2024 from Northwestern Mutual.

The typical Millennial who works with an adviser reported that they started looking for formal financial advice at age 29, nine years younger than Generation X (age 38) and 20 years younger than Baby Boomers (age 49).

“Millennials and Gen Z have witnessed some economic downturns at a young age and, more so than previous generations, are turning to advisers at a significantly younger age,” says James Munder, a wealth management adviser with Northwestern Mutual doing business as Munder Financial.

The study indicated that Gen Z (27%) and Millennials (28%) were less likely to view financial advisers as the most trusted source than Gen X (34%) and Boomers or older generations (39%). But Munder noted that, statistically speaking, the younger generations still value the advice of financial advisers ahead of nearly every other available source. The one exception was Gen Z, which identified family members as the most trusted source for financial advice (29%).

The convergence of workplace retirement plans and wealth management has heralded the creation of advisory shops with robust and growing wealth management practices for workers relying more than ever on 401(k) plans to supplement Social Security. While younger generations are more invested in early financial planning, they still may be waiting for pivotal life events to occur before consulting an adviser, according to Northwestern Mutual’s study.

Moments Matter

Northwestern Mutual revealed that the typical age at which a mother gives birth to her first child is 30, while the average age at which Americans tie the knot is 29. Munder suggests many people put off working with an adviser until a major life event.

“The most important thing to remind younger clients or potential clients of is: The sooner you get started with a financial plan, the better your long-term results are going to be, and your current financial situation isn’t your forever financial situation,” he says. “Everyone can benefit from working with a financial adviser.”

The study revealed 70% of Americans feel their financial planning needs improvement. Furthermore, 29% of individuals who previously did not have a financial adviser now intend to start working with one or have recently begun doing so.

This is a significant increase from previous years, says Munder. Based on last year’s study, just 18% of Americans planned to work with a financial adviser. Munder notes that the 11-percentage-point jump is likely due to several factors.

Anxious People

Those factors start with the fact that financial anxiety is at an all-time high. Younger generations are saving, investing and seeking financial advice earlier than ever. Additionally, Munder says people are more personally invested in their finances than ever before, and plenty of individuals try to tackle their finances from a DIY perspective.

“It’s good to remind people that just like a doctor, lawyer or even a plumber, advisers are professionals with deep insights into financial planning,” Munder says. “Regardless of the market or your life situation, an adviser can help you look at your finances holistically and help you live your best life.”

The Planning & Progress Study 2024 was conducted by the Harris Poll on behalf of Northwestern Mutual among 4,588 U.S. adults aged 18 or older. The survey was conducted online from January 3 through 17.