How to market effectively to Gen X investors in 2022

Gen X Investing

Financial marketers have a tremendous opportunity to reach Gen X investors, all 65 million.

Here are a few things you should know about reaching and communicating with this generation.

Gen X Investors

They are also known as sandwich generation, forgotten generation or simply Gen X.

They are a mix of older baby boomers with younger millennials.

Regardless of how they are segmented, they are poised to lead in accumulating wealth.

Deloitte predicts Gen Xers will see the greatest increase in their national wealth over the next decade.

As they age, they’re expected to capture a 32% market share.

They have about two decades of peak earnings ahead, and they want to make the most of it.

Marketers must reach and communicate with this growing audience, which has a significant and evolving impact on the financial sector.

To reach and communicate with them, we should first understand their needs and who they are.

What we know about Gen X investing habits

Gen X consists of 65,000,000 people with an average net worth of £168,600.

Their daily lives consist of prioritising and juggling different responsibilities.

They may already look after their aging parents or be saving money for their children’s university education.

They also pay for student loans, credit card debt, and large mortgages (sometimes multiple).

Many Gen Xers make 75% more than their parents, but they are sensitive to market volatility and the impact it could have on their nest egg.

40 percent of Gen Xers are not investing, and 37% believe they can’t afford retirement.

This generation is more cautious about making investment mistakes after experiencing the 2008 financial crisis and 9/11 tragedy.

Moreover, the growing concern about the disappearance of their retirement funds has made Gen X investors anxious to take risks within the market.

They are looking for stability and security to counter their fears.

Gen Xers have three main goals: paying off a mortgage, paying off debt, and saving for retirement.

Many Gen Xers started saving for retirement at about 30 and may now feel pressure to “catch up” before they reach retirement age.

This is usually the main reason why this generation wants to work with a financial adviser.

Gen Xers want financial flexibility to plan retirement with confidence, but still live their lives.

How to communicate with Gen X investors

What does all this mean for your marketing messages? This means those who address Gen X’s concerns and offer them risk-considered solutions will prevail.

Currently, less than half of Gen Xers use a financial adviser.

This allows financial experts to act as a trusted resource and make recommendations for diversifying investments to reduce any financial risk.

We propose marketing messaging strategies that add value and show how you can help Gen X investors feel more confident in supporting their family at their current stage of life.

This should be done while preparing for a comfortable retirement.

Give Gen Xers prompt and precise answers to their questions

Recent research shows 41% of respondents would change their adviser if they did not receive prompt responses or proactive outreach with relevant information.

Your marketing messages should make your client feel heard.

You should be there for them as a partner, with their best interests, goals and risk appetite at the heart of everything.

Effective methods to reach Gen X investors

Gen X investors are very specific to the communication channels they prefer.

All these channels should be combined in an omni-channel marketing strategy.

Pair them with a strong website presence that includes white papers, educational videos and other relevant information, and you’re on a winner.

One thing you should not do is assume that this generation is looking for the same level of one-on-one support as their grandparents and parents.

In fact, they are looking for a financial expert to help them achieve their goals.

They may want a little less contact, and if they do, an email can be sufficient.

T. Rowe Price recently conducted a study that found 60% of Gen X and millennials want a financial coach, someone who motivates and takes steps to achieve their financial goals.

The younger members of this generation are busy saving and earning, while worrying about their children’s future funds.

While older Gen Xers are beginning to think about early retirement.

Gen X investors, regardless of age, expect fast and accurate information from financial advisers they can trust.

Do not wait too long until you contact this generation again.

Trust is built over time through regular direct communication. Email automation sequences could work brilliantly to target this generation if you get your messages right first.

Gen X may seem like the forgotten generation, but it does not mean they should be ignored.

You can make Gen X feel confident about their future by taking the time to know their needs and goals, and to make sure you communicate with them how they feel comfortable.

Do you want to learn more about marketing to multi-generational audiences?

Maybe you want to branch out into a new demographic?

Our team is ready to help you develop a financial marketing strategy for a multi-generational audience.

Marketing for financial services