Growing and protecting wealth for Generation X
Sandwiched between Boomers and Millennials, Generation X is often a forgotten generation. But although they’re smaller in numbers than their generational counterparts, that doesn’t mean that they’re not mighty. Currently making up 30.7% of the Canadian labour force,1 they have above average household income—on average over $100,000!2 But, with all that income comes another burden – debt. And lots of it. Generation X has the highest debt of any other generation and because of it, the majority don’t have much saved. In fact, one in four Canadian Gen Xers have nothing saved for retirement!3 With their primary focus on paying off debt, life insurance is probably not top of mind either. But that doesn’t mean all hope is lost. With the right advice and guidance, you can help show your Gen X client the importance of life insurance in addition to paying down their debts and saving.
What are they looking for?
More than ever, Gen Xers are looking for financial help and guidance. They have an overall lack of financial knowledge and having lived through the dot-com bubble and the recession of 2008, are risk-adverse. They also tend to lack a trusted source for financial help. But what are they looking for?
- 41% want help calculating how much money they need to save for retirement
- 38% want help in determining at what age they can afford to retire
- 37% want help on deciding where to invest4
As you can see, there is plenty of opportunity on the investment side of things. But what about life insurance? With 68% of Gen Xers saying they need life insurance coverage5 and 31%6 concerned about their family’s financial state should they die, opportunities abound for information and education. That’s where you come in.
How to reach them?
Gen Xers are more likely to consult with friends and family to learn about life insurance, so be sure to build good relationships with your current clients so they won’t hesitate to refer you. Gen Xers also turn online and to social media to do their own research, so having a professional and polished online presence is very important. Make sure your website is current and complete with not only your contact details, but also relevant and timely articles and information. Post articles—either written by you or other subject matter experts—to your social media accounts using relevant hashtag. Almost half of Gen Xers will check an advisor’s social media presence and activity7, so if you’re not there, you could get left behind! ivari’s social share feature takes all the guesswork out for you. Simply select the article you want to share, the platform you want to use (Twitter or Facebook) and post! We’ve taken care of the content and links for you.
But it doesn’t end there—don’t forget the personal touch! Sixty-four percent of Gen Xers believe that meeting with an advisor in person before buying life insurance is important and more than half prefer that their first meeting with an advisor be in person!8 So take the time, build the relationship and position yourself as a subject matter expert. Then when the consumer is ready to purchase, you will be the first name that comes to mind!
To learn more, check out this infographic, or get in touch with your advisor.
1 Statistics Canada, 2018 Labour Force Characteristics
2 US Department of Labor Bureau of Labor Statistics, “Consumer Expenditure Survey: Midyear Update: July 2017-June 2018,” April 26, 2019
3 Franklin Templeton Investments Canada’s 2018 Retirement Income Strategies and Expectations (RISE) survey
4 https://www.aboutschwab.com/schwab-401k-participant-study-2019
5 LIMRA 2019 Insurance Barometer Report
6 Ibid
7 LIMRA 2018 Insurance Barometer Report
8 Ibid
Disclaimer
This article is intended for general information purposes only and should not be considered specific advice, nor is it a substitute for advice from a qualified professional. The article may contain information obtained from third-party sources. While reasonable efforts have been made at the time of publication to ensure that the contents of this article have been derived from reliable and accurate sources, including third party sources, ivari provides the information “as is” and ivari does not warrant the accuracy or completeness of the information contained herein.
Neither ivari nor its affiliates, officers, employees or any other person accepts any liability whatsoever for any direct, indirect or consequential loss arising from any use or reliance on the information or opinions contained herein.
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