The 35 and over group seeks out professional expertise. They talk to advisors and they seek out articles in newspapers and magazines. Even though all of our sample are internet users, the internet is not the primary vehicle for information that it is for the under-35’s.
Advisor Relationships by Age Group
Sources of Information by Age Group
Internet search Askfamily-friends-coworkers Read blogs/online forum Read book Talkto prof. advisor Watch online video Ask question online Read magazine-newspaper Call 800 # Watch TV program Watch DVD
37 36 36 32 29 26 24 39
Age 20-34 Age 35+
new rels -
While people are building advisor relationships, they are also maintaining traditional relationships. Some 40-50% of adult children typically discuss financial matters with their parents over a six-month span. Some 1 out of 8 parents reports they gave financial advice to their adult children over the past six months, but this is not surprising. What is surprising is that 1 out of 6 parents reported that they got financial advice or information from their children over the past six months.
Three of the most prominent elements in this exhibit merit a closer look: use of advisors, talking with family and the internet. First, we note the difference in use of professional advisors with 36% of the under-35’s going to an advisor versus 71% of the age 35+ group. This finding on use of advisors is consistent with other research but it also points to the likely growth in the number of advisor relationships over the next five years among the younger group. Using StatCan population estimates and data from this research, The Brondesbury Group estimates that some 800,000 new advisor relationships will be formed over the next five years.
Older parents are generally more knowledge about financial matters than their children, but their information-seeking skills and literacy are lower. The have built their knowledge over time but have difficulty keeping up-to-date. Their adult children are more skilled at finding information about new products or changes in the marketplace. We believe this is the basis for the exchange of knowledge between the generations. This exchange has tremendous potential. Older adults who don’t use the internet can potentially be reached by encouraging their adult children to become conduits for information. Responses from parents with adult children indicate that more than 6 out of 10 are receptive.