Why Gen Y & Z are Increasingly Open to Seeking Advice from Financial Advisors
Financial Services Intelligence Update
Despite the rise of digital platforms and DIY investing tools, younger DIY investors are increasingly open to seeking advice from financial advisors. Gen Y and Gen Z DIY investors are showing a stronger preference for working with financial advisors than their older DIY counterparts, even though they grew up using technology for almost everything, according to the latest JD Power U.S. Investor Satisfaction Study.
Kapil Vora, Senior Director of Wealth Intelligence at JD Power, shares his expertise in the Financial Service Intelligence Update on why this shift is happening and what it means for the future of wealth management.
DIY Investors Are Reaching Out
“We tend to think of DIY investors as confident and independent,” said Vora. “But the data shows many of them are open to advice, especially younger ones. Gen Y and Gen Z investors are the ones most likely to say they want help from an advisor”
As these younger investors move through major life milestones like starting families and building wealth, they are realizing that digital tools alone may not be enough.
“They’re beginning to recognize that they don’t have all the answers,” Vora added. “Many are saying that online information just is not enough to support their financial decisions anymore.”
Why Advisors Matter More Than Ever to Gen Y & Z
Younger investors are not turning away from digital platforms. Instead, they are saying they want more support than digital alone can provide. The study shows that they often feel uncertain about financial matters and want guidance that feels personal and reliable.
“Younger investors are growing, and so are their financial responsibilities,” Vora said. “They want to talk to someone who understands their unique goals and challenges.”
This presents a clear opportunity for wealth management firms.
What Must Firms Do?
To meet the needs of younger investors, firms should focus on three key priorities:
- Combine digital platforms with access to financial advisors
- Create services and products that support goals like homeownership, debt repayment, and asset building
- Make their platforms easy to use and understand
“The most successful firms will be the ones who make advice accessible and relevant without forcing a choice between tech and people,” Vora explained.
Market Volatility Is Accelerating the Shift
With market volatility continuing, more investors are reaching out for support. According to Vora, this environment is increasing the desire for professional guidance.
“Some DIY investors may be caught off guard, and we expect to see a growing interest in advice during this period,” said Vora. “For investors who already work with an advisor, those who receive comprehensive advice feel more confident and secure.”
Who’s Leading the Pack?
This year’s top-performing firms stand out for their ability to align with investor needs, whether that means offering hands-on advice or robust self-directed tools. Raymond James ranks highest in overall satisfaction among advised investors, with a score of 748 (on a 1000-point scale). U.S. Bank (738) ranks second and Edward Jones (734) ranks third.
Vanguard ranks highest in overall satisfaction among DIY investors, with a score of 704. Fidelity (703) ranks second and T. Rowe Price (691) ranks third.
“These firms are meeting their clients where they are, whether they want self-directed tools or hands-on support,” said Kapil Vora.
To see the full list of rankings and detailed insights, read the press release.
What’s Next for Gen Y and Z Wealth Management?
The future of wealth management for this emerging cohort lies in a hybrid model that blends technology with human empathy. As Kapil Vora put it:
“It’s not just about being digital. It’s about being helpful. That’s what younger investors are asking for.”
Firms that recognize and respond to this shift will be better positioned to earn long-term loyalty from the next generation of investors.
See how your firm can benchmark performance and uncover deeper insights with JD Power investor satisfaction data and analytics.
