Everybody knows self-driving cars will soon be all over U.S. highways. Let’s assume self-driving cars will one day become as safe as human-controlled vehicles. Even so, there will still a huge problem with them. If you can get younger people to understand it, it might help them also think about why they should use your services, rather than robo-advisors.

The problem is: When people start depending on self-driving cars delivered by Google, Apple or Uber, they won’t learn how to drive. They will never learn (or forget) how to: navigate their surroundings, care for valuable machinery, budget for an important purchase, and solve problems behind the wheel. A big part of the human learning curve will no longer be necessary – made obsolete by technology.

Robo-advisors are the self-driving cars of personal finance. Their pitch is: You don’t need to learn or do anything to reach your financial goals. Just sign up and push buttons. The computer will do the thinking for you, eliminating the need for financial education and self-empowerment.

Young, tech-savvy people – Gen Xers and millennials – are the prime markets for robo-advisors. So, you might logically ask: How much financial knowledge and skill do they want and need? Fortunately, the answer is: Plenty!

To understand why, check out the newly released 17^th Annual Transamerica Retirement Survey of Workers:Perspectives on Retirement: Baby Boomers, Generation X and Millennials.

Here are key survey findings:

75% of millennials and 68% of Gen Xers want more information and advice from their employers on how to achieve retirement goals.
72% of millennials and 69% of Gen Xers say they don’t know as much as they should about retirement investing.
Yet, only 18% of millennials and 28% of Gen Xers are currently using a financial planning or broker for retirement planning and investing advice. Millennials especially rely more on friends and family (40%) or financial websites (34%) for information and advice.

In marketing to these generations, emphasize education and planning services. Use this type of language: “My job is to empower clients with knowledge, so they can make their own planning decisions with my help.”

Don’t try to dazzle these generations with sophisticated financial concepts. When asked what would motivate them to learn more about saving and investing for retirement, 59% of millennials and 52% of Gen Xers answered “making it easier to understand," while 38% of millennials and 34% of Gen Xers said “having a financial advisor.”

Help younger people understand the real problem self-driving cars. Then, help them gain access to professional advice and service along with financial education that’s easy to understand. It’s a winning combination for success with your next generations of clients.

Instant Insights /

Robo-advisors are the self-driving cars of personal finance

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