“Today ’s young adults will likely need to rely more on individual savings for retirement than their older counterparts. But so far, they aren ’t preparing to do so, ” comments Susan Menke, Senior Analyst at Mintel.

Most financial advisors aren ’t focused on Generation Y. Mintel found that teens and 20-somethings make up only 5% of financial advisors ’ client base. “Advisors still primarily target wealthier, older adults, ” explains Menke. “With less disposable income, Gen Y isn ’t seen as a lucrative clientele. But financial advisors are missing the opportunity to catch young adults now and keep them as they grow older … and richer. ”

Mintel Comperemedia, which tracks trends in direct marketing, confirms that most direct mail campaigns for investment products are sent to older Americans. In 2007, adults aged 30 and under received only 2% of investment direct mail offers tracked by Mintel Comperemedia. In contrast, adults over age 60 got 41%.

Mintel Comperemedia does show some companies making an effort to target Gen Y. For instance, USAA promotes an IRA with no fees and a low minimum contribution to encourage younger adults to start saving so their money can grow over time. Likewise in direct mail, Bank of America targets tech-savvy youth by promoting an online integrated platform for its brokerage accounts. The bank also highlights its automatic investment plan for added convenience.

¹ Generation Y was born between 1977 and 1994. They are currently aged 14 to 31 years old and comprise 21% of the US population.