Working with millennials SMSF trustees may involve a different approach on the part of superannuation specialists, financial advisers and accountants. Surveys show that many millennials distrust banks and are unlikely to rely on them and this includes where to invest their money for their retirement.
Before you dismiss millennials as just the smashed avo generation or too young to be taken seriously yet, let’s keep in mind that millennials now make up about half of the Australian workforce and account for one in every three dollars spent.
Millennials and money
This generation wants to take control and keep control of their money – their savings, spending, credit, borrowing and superannuation. They are the generation ready to become completely invested in their future financial security – they have already dealt with higher costs of housing and education and they have learned lessons from their parents generation. As they themselves become parents (18% already are) they also want to make sound investments to protect their children’s future – financial and otherwise.
According to Alpha Beta Strategy Economics:
- Millennials are moving away from credit cards
- Millennials are delaying (or avoiding altogether) home ownership
- Millennials will spend on private health insurance over alcohol
- Millennials are 30% more likely than their parents to save regularly
- 80% of millennials budget (versus two-thirds of older generations)
- Almost 1 in 3 millennials use online tools to track their spending
Millennials and SMSFs
This is the generation that has control over the superannuation unlike any generation – they can choose which fund they are part of, they can choose to self-manage – and they are. Millennials, according to the ATO, account for the highest proportion of uptakes of SMSFs. This is the generation actively seeking long term support to manage their superannuation funds and therefore a great opportunity for those in the industry prepared to get up to speed on their wants and work with them.
What is it they want exactly?
They want long term stability (they are really far away from retirement), they want solid yields (they are often delaying investment in bricks and mortar so they want to know it’s strong), they want advice without being dictated to, they want to get involved in investments that are sustainable, green, with a social conscience, they want to have diversification (they lived through seeing their parents have their superannuation tank during the GFC).
Australian Solar Investments can offer your millennial clients an opportunity to get involved in a ground floor small scale renewable energy investment with strong yields, a chance to diversify their assets classes, all while moving into the renewable energy industry.
More information: You can get more information about our renewable energy investment opportunities at https://austsolarinvestments.com.au/invest/
Warren Murphy, Chairman
Warren is a senior executive with over 20 years of experience in the energy and finance sectors. He has been a member of numerous investment committees and audit and compliance committees for public companies and for funds. He led the team that created Australia’s largest renewable energy company, Infigen Energy (and its unlisted predecessor, Global Wind Partners) where he served as a director for over seven years. He has also served on a number of public company boards, both listed and unlisted, including Coogee Resources Limited and Sydney Gas Limited. He is currently a director of Carbonxt Group Ltd.
