How Millennials are redefining family and finances

New UBS survey results reveals that generational nervousness may affect financial planning

05 Oct 2016

Millennials tend to look upon their Baby Boomer parents as friends and mentors, and in a recent UBS Investor Watch survey, three out of four in the younger generation said their families have given them financial support after college. And while 8 of 10 Boomers say they’ve been happy to provide that help, their children’s experience is in sharp contrast to their own. Just 35% of Boomers say they got continued financial help from their own parents.

Those generational differences are also reflected in how the two groups view some financial principles, such as the benefits of a long-term investing strategy. Many Millenials say they’re put off by the risks of investing, and three quarters are unhappy with their investment portfolios.

UBS Financial Advisors are experienced with generational issues and take the long view. If you're a Millennial concerned about your finances, or a Boomer parent seeking additional ways to help your children, ask your Financial Advisor how better planning can help build a sound financial foundation for the future.

Key findings from the survey:

  • 32% of Millennials say they follow their gut, rather than a formal plan, when investing, compared to only 14% of Boomers.
  • 1 in 4 Millennials has already tapped retirement savings to make a large purchase, and another third said they would consider it. By contrast, 74% of Boomers say they would never even think of doing that.
  • Millennials are more risk-averse than their parents, holding 47% of their portfolios in cash—more than twice the percentage Boomers keep in cash.
  • Millennials want guidance: 71% said they’re interested in financial planning help, 70% want investment advice and 60% want budgeting assistance.

Investor Watch surveys U.S. investors on a quarterly basis. For this edition, we surveyed 2,971 high net worth investors, including 1,131 Millennials ages 21-36 who had $100,000–$250,000 in investable assets. For complete results, view the interactive report or download the full report (PDF, 1 MB). Then, talk with your Financial Advisor about ways to help support Millennial investors’ unique needs.