Serving the New Majority: Next Generation and the $70 Trillion Opportunity 

Introduction: A Pivotal Opportunity

Over the next two decades, $68-70 trillion will transfer from Baby Boomers to their Millennial and Gen X heirs. This is the largest vertical wealth transfer in history, and with it comes a pivotal moment for financial advisors.

Studies show that 87% of heirs change financial advisors after inheriting wealth. This staggering attrition rate signals a massive risk and an equally enormous opportunity.

Financial advisors that engage the Next Generation will be positioned to be on the receiving end of generational wealth. Firms that build relationships now can secure a future pipeline of loyal, informed clients.

The Disconnect: Why Heirs Leave Advisors

Most wealth managers have built their book of business on long-term relationships with Baby Boomers, but that legacy does not guarantee loyalty from the Next Generation.

Common pitfalls include:

• Heirs were never invited to planning conversations

• Younger family members felt excluded or ignored

• Advisors failed to speak in relatable or digital-first terms

According to Cerulli Associates and RBC Wealth Management, the average age of new client onboarding is rapidly decreasing with Millennials onboarding at 29 compared to Boomers at 49.

Understanding the Next Generation of Wealth Holders

Next Gen clients are not just younger, they are different. Their values, expectations, and definitions of success often diverge significantly from their parents.

Traits of Next Gen investors:

• Desire education, not salesmanship

• Prefer collaborative relationships over hierarchical structures

• Value impact investing, ESG, and socially responsible portfolios

• Expect digital fluency and seamless, on-demand access to information

Adaptation of technology and a keen understanding of clients desires will be critical to success. 

Education as Engagement: A New Retention Tool

Advisors who educate early build trust before the inheritance occurs. For younger clients, education is a differentiator. Studies from McKinsey, Deloitte, and EY show that advisors who take time to teach and guide are significantly more likely to retain Millennial and Gen Z clients long-term. In fact, clients under 40 are nearly twice as likely to stay with advisors who provide structured financial education, according to EY’s Global Wealth Research.

Educational offerings can include:

• 1:1 financial literacy coaching

• Family finance workshops

• Investment bootcamps for adult children

• Values-based planning exercises

When clients feel equipped to manage wealth, they’re more likely to keep the advisor who empowered them.

Call to Action: Future-Proof Your Firm

If your firm isn’t engaging the Next Generation, you’re already behind.

Financial advisors will secure their business future by:

• Invite Next Gen clients into planning conversations early

• Deliver tailored education and mentorship

• Align with their values (Especially around impact, transparency, and tech)

With the many tasks and responsibilities financial managers and brokers already perform on a daily basis, creating Next Gen targeted programming can be overwhelming. Aligning with businesses that specialize in this area can be a win-win, providing the desired education to the younger potential clients and demonstrating the willingness to work with the whole family, not just the Baby Boomers.

Let’s connect on how collaborative education can help you retain clients, build trust across generations, and differentiate your practice.

About the Author

Kailey Izard Welsh, MBA, CFEI

Kailey Izard Welsh is a Certified Financial Education Instructor (CFEI) with experience working with high-net-worth clients. She holds an MBA from Wake Forest and a Certificate in Private Wealth Management from the University of Chicago Booth School of Business. A member of the Next Generation herself, Kailey brings a personal perspective to her work as she completes her CFP experience hours. She collaborates directly with high-net-worth families—particularly women and rising gen members—to educate, empower, and equip them for long-term financial stewardship.

Kailey leads workshops including Personal Finance 101, Wealth Stewardship, and Investing Basics, helping clients align their money with their values and explore the personal and relational impact of their financial decisions.

To learn more about how Kailey partners with financial firms, visit www.wealthed.co or email Kailey at kailey@wealthed.co.

Sources

• Cerulli Associates. (2021). U.S. Wealth Report. Retrieved from https://www.cerulli.com/publications/us-wealth-management

• Deloitte. (2020). Next Gen Wealth Clients: Engaging the Evolving Investor. Retrieved from https://www2.deloitte.com

• EY (Ernst & Young). (2021). Global Wealth Research Report. Retrieved from https://www.ey.com/en_gl/wealth-asset-management

• Fidelity Investments. (2022). Family Engagement & Financial Education Toolkit. Retrieved from https://institutional.fidelity.com/app/item/RD_13569_29763.html

• InvestmentNews & PriceMetrix. (2019). Advisors and the Next Generation of Investors. Retrieved from https://www.investmentnews.com

• J.P. Morgan Private Bank. (2022). Multigenerational Wealth Planning. Retrieved from https://privatebank.jpmorgan.com/gl/en/insights/wealth-planning/multigenerational-wealth

• McKinsey & Company. (2020). Women as the Next Wave of Growth in Wealth Management. Retrieved from https://www.mckinsey.com/industries/financial-services/our-insights/women-as-the-next-wave-of-growth-in-wealth-management

• McKinsey & Company. (2021). The Future of Wealth Management: Redefining Client Engagement. Retrieved from https://www.mckinsey.com/industries/financial-services/our-insights/the-future-of-wealth-management-redefining-client-engagement

• RBC Wealth Management. (2021). Preparing the Next Generation. Retrieved from https://www.rbcwealthmanagement.com/en-us/insights/preparing-the-next-generation

• UBS. (2022). Own Your Worth Report. Retrieved from https://www.ubs.com/us/en/wealth-management/women/own-your-worth.html

• Wells Fargo Private Bank. (2021). Educating the Next Generation. Retrieved from https://www.wellsfargo.com/the-private-bank/insights/family-dynamics/educating-next-generation/