The study showed that only 8 percent of millennials use a non-workplace, tax-advantaged savings account such as an IRA, Roth IRA, annuity fund or similar plan. Roughly 9 percent have invested in both a workplace and non-workplace retirement plan or account.
Broadridge said advisors should consider these key steps to broaden their client base to include millennials:
1. Move out of your comfort zone. Millennials might seem disengaged, but they are more ready than advisors realize to have financial discussions. They stand to inherit as much as $30 trillion from their parents over the coming decades.
2. Recognize millennials value their uniqueness. Millennials are less interested in prepackaged products like target-date funds, asset allocation and other important retirement planning tools. They tend to be receptive to conversations that focus on their uniqueness.
3. Become a B2B millennial consultant. Build relationships with employers in your area to reach more millennials.
4. Leverage health savings accounts as a door opener. If HSAs are explained correctly, particularly highlighting their tax advantages, the conversation may interest millennials and lead to broader conversations about other financial planning issues.
5. Educate millennials. They tend to favor low-return savings accounts for retirement and don't understand long-term rewards that can come with more risk. At the same time, they have an interest in private equity and global investing, although some U.S. investments may be more appropriate.
6. "Friend" your millennial prospects the right way. Update your LinkedIn profile to include your photo and your interests. Invite the millennial children of your clients to meet with you.
7. Put your age and experience to work. Millennials value experience above all. Look beyond myths and understand them.