Growth in Buying Power
Whatever strategies work, one thing is clear: As millennials age, they are expanding their financial footprint. “In their 30s, millennials have additional needs,” says Spencer. “By now they are further into their careers, so they have a higher income. … This creates a higher insurance need because their standard of living has increased greatly since their 20s.” Not to mention the fact that they have started families and are owning homes, he adds.
That’s something all generations can relate to—the way life’s milestones create a need for insurance. “Even as this older group of millennials begins to feel comfortable making these big purchases and life decisions, they are sensitive to the need for financial stability, which insurance can provide,” says Sachatello.
As a group, they may be optimistic about their financial futures, but that doesn’t mean they aren’t searching for greater financial security.
“Young adults are incredibly optimistic about their financial futures, yet at the same time they’re intensely worried about their current financial stability,” she says. “You need to embrace that dichotomy, and give them a road map that demonstrates how they can address their pressing concerns while positioning themselves to achieve long-term success.”