With Millennial wealth rising faster than that of any other generation over the last five years, advisors should begin to look at this demographic seriously as a viable market for portfolio growth, according to the latest Cerulli Edge—U.S. Retail Investor Edition.

Cerulli estimates Millennials had an average net worth of more than $278,000 in 2021—an average yearly increase of 23.1% since 2016, which is the highest growth rate of any generation. Millennials—once seen as too young and not wealthy enough to necessitate full advice relationships—are starting to raise families, buy homes, and take on leadership positions in their careers. This generation is progressively looking for formal financial advice and planning to best manage their affairs as well as ensure their retirement goals are on track.

The research finds that 59% of Millennials identify as advice seekers—those who want more financial advice than they receive currently, are interested in new ideas, and—most crucially—are willing to pay for that advice. On top of that, the research finds Millennials are the least likely to be purely self-directed (6%) and more actively engaged with their finances.

While Millennials historically have had a high rate of direct provider platform use, resulting in substantial targeted marketing from brokerage platforms and digital advice providers, increasingly they are demanding more personalized advice, including comprehensive financial planning. “Active interest in their finances also means Millennials would be most likely to come to meetings and be open about what they are looking for, potentially enabling development of a strong two-way relationship with their advisors,” says research analyst John McKenna.

Even with markets sliding in 2022, Millennials likely will be able to weather the storm thanks to their investment horizons and historical tendencies of markets to rise over longer timeframes. “Taking care of Millennial clients in their wealth-earning years is a largely untapped market for book-growing advisors. It is also a client base that could be loyal for the next 40 years if an effort is made to bring them into the fold early,” concludes McKenna.