Who Is Receiving Wealth Management?


Wealth Management services have been around in one form or another for many years.  There has been a push in the industry to have more and more investors receive Wealth Management services. The services included in Wealth Management are beneficial to investors at various stages of their financial lives, so it is important for all investors to consider working with a firm that provides Wealth Management, yet not every investor has decided to do so. Who is currently receiving Wealth Management services? What types of investors are the most likely to feel they are well suited for Wealth Management?

Spectrem Group recently conducted follow-up research regarding Wealth Management and how wealthy investors define it, and who receives it. The percentage of investors that currently receive Wealth Management Services from their financial provider has nearly doubled since 2018, going from 36 percent in 2018, to 64 percent in 2021. Investors in the field of Information Technology and Business Owners are the most likely occupations to be currently receiving Wealth Management. It is not surprising that as wealth increases, so does the likelihood of an investor receiving Wealth Management services from their financial advisor.

This means that just over a third of investors do not receive Wealth Management services. It is unlikely that these investors are not familiar with the term or concept, as only 11 percent of investors are not familiar with the term Wealth Management. It is more likely that a portion of the investors who are not receiving Wealth Management do not feel that Wealth Management is suitable for someone like themselves. Over a quarter of investors do not agree that Wealth Management is appropriate for themselves. That percentage is much higher among investors at lower levels of wealth but is still over 15 percent for investors at the higher levels of wealth.

The cost of receiving these services is also a barrier for many investors regarding Wealth Management services. While only 17 percent of retired investors feel that Wealth Management is too expensive, 37 percent of working investors feel that Wealth Management is too expensive for the services they are looking for. That percentage jumps up to nearly two-thirds among Millennials who feel that Wealth Management services are too expensive for what they need. This sentiment is very interesting given that Millennials, primarily being in their 30s and early 40s are in a time of their life where Wealth Management would be extremely helpful in assisting them with planning for the next phases of their life, as well as properly protecting them from an insurance perspective. 

It is unlikely that the reason why individuals have not sought out Wealth Management is thinking they can do it themselves. Only 40 percent of investors feel they know enough to do Wealth Management on their own. That percentage drops down to 14 percent among Educators who feel they know enough to do their own Wealth Management. Eighty-three percent of investors also indicate that they believe Wealth Management requires highly skilled professionals, so they are aware that these types of services require knowledge that goes beyond what they may have.

Regardless of what the reason is, those investors who have not yet started receiving Wealth Management services may want to consider it or at least discuss with their financial advisor the concept. Investors indicate that second only to investment allocation, an advisor’s value is providing peace of mind regarding financial topics, which can often be accomplished best through Wealth Management.