Investment - Articles - Generational trends and differences in financial motivations


Identifying generational trends and differences in the financial motivations of consumers, will be key for insurance providers to secure a pipeline of customers in the longer-term, claims Hymans Robertson.

 Research from the leading pensions and financial services consultancy shows that with-profits products are the most popular variation of a savings or long-term insurance product amongst almost half (43%) of consumers surveyed. However, splitting the results by age showed that Gen Z (18-26 year olds) appear to be more driven by professional advice (39%) compared to Gen X (43-58) year olds, the majority of whom made their choice independently (40%). Only 14% of Gen Z respondents chose their with-profits product by themselves.

 Over a quarter of Gen Z respondents chose having investment decisions managed in line with clear objectives, but not requiring ongoing input as one of the three most important product features they value. Ready-made solutions, with clearly defined investment goals is an area where the research highlights that further innovation should be expected – building on initiatives like Investment Pathways.

 The research also highlights that each generation has slightly different journeys or reasons for choosing a with-profits product. It is therefore well worth insurance providers investing in understanding how these motivations differ so they can better target, build and maintain their pipeline of with-profits consumers.

 Commenting on why it is important for insurance providers to look closely at each generations’ motivations, Rebecca Macdonald, Head of Products, Hymans Robertson, says: “It was really interesting to see the differences between the generations in our research results. The fact that they are so significant, in some instances, when compared to the averaged response highlights the valuable insights available here. For insurance providers looking to better target their offerings and develop new products, discovering what drives certain groups could be a reliable way to secure a pipeline of consumers over the longer-term.

 “The variance between the number of Gen Z and Gen X respondents that chose their with-profits product because they personally thought it was the best option for them is proof that there are likely lots of different drivers at work. Gen Z it appears, may be less confident making decisions about these types of products alone – preferring to lean on an adviser, or even friends and family (34%). Whereas Gen X are more confident to go it alone and make up their own mind. Therefore, working on averages is likely not as useful as drilling further down into the detail.”

Back to Index


Similar News to this Story

Fantasy football and investing more similar than you think
The end of the football season is upon us. Managers of fantasy football teams are reflecting on their performance and considering how they might impro
15th anniversary of the Bitcoin pizza worth now over USD1bn
Bitcoin pizza day marks the 15th anniversary of the first recorded real-world Bitcoin transaction. Laszlo Hanyecz spent 10,000 Bitcoins on two pizzas.
Charting the course for open finance
The FCA reflect on their recent Open Finance Sprint and map a future of financial services led by adaptability, inclusivity and a user–driven approach

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.