Like many other market evolutions, the “great wealth transfer” is leading retirement plan advisers to rethink and relearn their practices. David King, CEO of Ducenta Squared Asset Management, says even the wording “wealth transfer” needs to be rethought.
“I want to say ‘succession of wealth,’” King says. “I think that’s a more applicable verbiage, because ‘transfer of wealth’ is singular, in terms of the monetary [element]. … I view this as a succession of wealth.”
Thinking of the transfer as a successive, ongoing process places emphasis not only on the capital that many Generation Z and Millennial investors will inherit, but also on the adviser relationship these younger investors will likely take on as well, according to King.
This succession is already playing out in advisers’ practices. Julia Bartak, a financial adviser at Edward Jones, says she is increasingly seeing interest from younger investors, often through existing client relationships.
“More often than not, it’s the Gen Z generation … even clients’ kids coming to us more and more now,” Bartak says. “I’m seeing a lot of Gen Z investors reaching out.”
interest from younger generations is increasing, in part due to the rise of financial conversations on social media, according to industry experts. Advisers are faced with the important task of making retirement advice relevant for those in Gen Z and for younger Millennials, who are still decades away from leaving the workforce.
For many advisers, engaging younger clients can start with considering time horizon and discussing advantages gained by starting early and benefiting from compound growth.
“The biggest driver of long-term success isn’t how much someone saves right away, but whether they build consistent saving and investing habits early in life,” Bartak says. “[Savings] can compound significantly over time.”
On average, clients will meet with a plan adviser for the first time at age 55, according to Rebecca Hourihan, founder and chief marketing officer of 401(k) Marketing. Advisers meeting with Gen Z and younger Millennial clients today, therefore, have as much as “a 30-year potential head start to form a relationship with an employee,” Hourihan says.
Speaking Their Language
To make vital financial information relevant to younger investors, advisers may need to reframe financial conversations altogether. For Gen Z in particular, financial stability is less about reaching a certain account balance and more about flexibility and control.
“For [Gen Z], it means being able to cover expenses comfortably, avoid high‑interest debt and build consistent savings habits without feeling constant financial stress,” Bartak says.
Millennials are more likely to think long-term. Research from the TIAA Institute and the Global Financial Literacy Excellence Center shows that 26% of Millennials expect to spend at least 30 years in retirement, the highest percentage of any generation, says Kourtney Gibson, CEO of TIAA Retirement Solutions. Yet only 34% demonstrate basic retirement fluency, showing that the disconnect between longevity expectations and financial understanding creates an opportunity for advisers to add value.
“That’s a generation that understands longevity is real and that financial stability has to stretch further than it ever has before,” Gibson says.
How advisers engage also matters. While digital tools and virtual meetings are often preferred by Gen Z and Millennial clients, many still value personal connection when discussing complex decisions.
“Most Gen Z and Millennial clients prefer to meet with their financial advisers virtually,” Evan Potash, executive wealth management adviser at TIAA Wealth Management. “Even so, it remains valuable for clients to meet their adviser in person at least once. When a client looks me in the eye, sees the passion in my face as I help them build their financial plan, and shakes my hand, a real connection is formed.”
Potash adds that meetings with younger clients tend to be more concise and focused, emphasizing the importance of clear language and structured conversations, especially for younger investors just getting started.
Misconceptions of Younger Investors
Despite growing engagement, misconceptions about Gen Z and Millennial investors persist. One of the most common is that they are financially disengaged or uninterested in saving for the future. Industry data and adviser experience suggest otherwise.
Gibson points out that while only one in five Gen Z individuals is currently saving for retirement, the leading reason proves to be uncertainty—not indifference.
“Thirty‑five percent of Gen Z say they don’t know where to start,” Gibson says. “That’s not apathy. That’s an invitation for our industry to do better.”
Gibson says Gen Z does care about saving, with 30% in the TIAA study identifying it as a priority. She highlights a notable 10% jump in retirement savings participation occurring between ages 22 and 23, when many land their first full-time jobs. At the same time, younger investors are actively searching for guidance: 65% of Gen Z follows financial institutions, advisers or financial influencers on social media.
Another misconception is that while younger investors may seem savvy due to their access to instant investment information online, industry experts often find them struggling to use all that information to make a decision.
“There’s a lot more financial products than there used to be,” Hourihan says. “Now there’s crypto, derivatives. … Everyone on Reddit, for some reason, is a ‘professional investor.’ … I think a lot of folks are looking for balance.”
Bartak says she sees some younger investors reach a point of information overload. For advisers, it will be important to simplify the noise.
“Younger investors can feel overwhelmed by the amount of information and worried about making the wrong decision,” she says. “Being able to sit down with them, sort through all the noise and put a plan together, specific for them, makes a big difference.”
