Canadians’ attitudes towards financial planning differ according to their age, and so financial advisors must alter their approach in order to resonate with younger clients, a recent study by Mackenzie Investments suggests.

Indeed, a survey conducted by Leger Marketing on behalf of Mackenzie shows marked differences in the financial profiles of investors between the ages of 18 and 45 compared to those 45 to 64 years old.

“These younger investors are an upcoming group of potential clients for advisors,” says Carol Bezaire, vice president tax and estate planning for Mackenzie Investments. “It’s important for advisors to understand the differences so they can adjust their financial advice to this new group of prospects.”

While advisors may be used to working with clients who are preparing for retirement, many in the younger generation haven’t started thinking about retirement yet. In fact, 22% of those between the ages of 18 and 34 have never had a full-time job.

Many are coping with student debt: 20% of those aged 18-34 and 29% of those aged 35-44 used student loans to pay for their post-secondary education, compared to only 4% of those 65 and older. Nearly a third of 18-34 year olds said they got funds from their parents to help pay for post-secondary education, compared to only 16% of those aged 45-54 and 18 per cent of those aged 55-64.

The younger investors are also less likely than older clients to have children, and more likely to come from a smaller family.

Not surprisingly, younger individuals are less likely to have a retirement savings plan. Of those aged 18-34, about 40% have neither a Registered Retirement Pension Plan nor a Tax Free Savings Account. In contrast, for those aged 35 and over, 76% have one or both types of investment plans.

When working with an advisor, clients of all ages prefer a personalized approach. They appreciate when an advisor takes time to get to know them because “it shows they care,” according to the survey.

Of those with a financial advisor, 63% said they prefer to speak to them in person, with phone and email trailing far behind at 19% and 16% respectively. But younger investors are considerably more open to email communication: 22% favour email, compared to just 12% of investors aged 45 and older.

There are also specific differences in the younger generation’s attitude towards estate planning. Those under 45 generally believe that the best time to create a will is after the birth of a first child, while older Canadians believe a will should be created when an individual gets married.

“Advisors can continue to work with their current clients, but the next generation will be the ones responsible for assets as their parent’s age. Involving family members in will and retirement planning will require advisors to adjust the way they advise for many,” Bezaire said. “In some cases, pushing certain products may not be in line with the way that generation thinks.”

Overall, eight out of 10 Canadians working with an advisor said they trust and respect their advisor.