2021
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US Financial Needs of Emerging Affluent and Affluent Market Report 2021
2021-03-03T03:01:49+00:00
OX987362
3695
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“Having already achieved many financial goals often missed or delayed among lower-income demographics, emerging affluent and affluent adults are a target that needs to be approached with more finesse than…

US Financial Needs of Emerging Affluent and Affluent Market Report 2021

£ 3,695 (Excl.Tax)

Description

This report provides comprehensive and current information and analysis of the financial needs of emerging affluent and aflluent market including affluence market size, anticipated market forecast, relevant market segmentation, and industry trends for the emerging affluent market in the US.

Current emerging affluent market landscape

While their household income and investible assets are significantly higher than the general US population, emerging affluent and affluent consumers are still focused on financial concerns similar to others – fees, rewards and location.

Emerging affluent market share and key industry trends

Top takeaways: what emerging affluent and affluent consumers want from their finances

  • To be seen as unique customers with unique needs. Affluent consumers are highly banked and nearly all own a checking account or credit card. Needs differ by demographics, as men are more interested in investment accounts, younger generations have personal and student loans and those with the most assets overindex to credit cards, likely for their rewards programs. Knowing that financial services providers already “know” this type of customer, the next step is deepening their relationship. Marketers can position different financial products based on the intended audience.
  • To grow their wealth. Most affluent and emerging affluent consumers have at least $500,000 of investable assets, making them a profitable audience with a variety of financial needs. Most of this demographic does not regularly seek out financial advice and most do not use a specialized advisor. In carving out a deeper relationship with these unique consumers, financial brands have the opportunity to prove their worth and help them increase their wealth through personalized advice and product offerings.
  • To be successful outside of their financial wealth. Less than 30% of emerging affluent and affluent adults agree that their definition of success “includes being financially wealthy.” Younger generations are particularly interested in being wealthy, but older adults realize that success is built on more than just financial stability. Financial brands have the chance to help grow their wealth, but COVID-weary adults are also particularly open to the knowledge that money doesn’t buy happiness.

Future market trends in emerging affluent

They have reached several financial goals that many households have yet to reach and own many financial products, so the opportunity for financial services providers is to build a trusted partnership with these adults, help consumers increase their knowledge and fine-tune their goals to help grow their wealth.

Read on to discover more about the emerging affluent consumer market, read our Financial Needs of Mass Affluent Consumers – US – 2021, or take a look at our other Financial Services research reports.

Quickly understand the emerging affluent segment

  • The impact of COVID-19 on emerging affluent and affluent consumers and their finances.
  • Factors influencing financial service provider choices for emerging and affluent households.
  • Opinions on trusted sources of financial information for emerging and affluent consumers.
  • Emerging and affluent attitudes toward financial advice and personal wealth.

Expert analysis from a specialist in the field

This report, written by Jennifer White Boehm, a leading analyst in the Finance sector, delivers in-depth commentary and analysis on merging affluent vs mass affluent to highlight current trends and add expert context to the numbers.

Having already achieved many financial goals often missed or delayed among lower-income demographics, emerging affluent and affluent adults are a target that needs to be approached with more finesse than the standard finance consumer. They frequently look to professional financial advisors when seeking out finance information, but well over half are confident in their ability to manage their own money. Financial services brands have the opportunity to be a trusted partner, alleviating stress and offering time-saving products to help them along their financial journey.

Jennifer White Boehm, Associate Director, Finance Reports
Jennifer White Boehm
Associate Director, Finance Reports

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Definition
    • COVID-19: market context
  2. Executive Summary

    • Top takeaways: what emerging affluent and affluent consumers want from their finances
    • Target audience overview
    • Impact of COVID-19 on the financial needs of emerging affluent and affluent consumers
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the financial needs of emerging affluent and affluent consumers, December 2020
    • Opportunities and challenges
    • Despite higher income, decision factors for affluent are the same as everyone else
    • Perceptions of wealth and success evolve with age
    • Emerging affluent and affluent are confident in their financial skills – how can financial brands step in to help?
  3. Affluence by the Numbers

    • Over 20% of US population has $75K or more in income
      • Figure 2: Percentage of households with $75K or more in total money income, 2000-18
    • Median income continues to climb to just over $63K
      • Figure 3: Median income in the United States, 2000-18
    • Great wealth transfer as Baby Boomers age
  4. Household Investable Assets

    • Majority have $500K in investible assets
      • Figure 4: Household investible assets, October 2020
    • Highest concentration of assets among older consumers
      • Figure 5: Household investible assets, by age, October 2020
    • Among older consumers, men hold more assets
      • Figure 6: Household investible assets, by age and gender, October 2020
    • Household income not the only determining factor of assets
      • Figure 7: Household investible assets, by household income, October 2020
  5. Ownership of Financial Products

    • Affluent consumers are familiar with financial products
      • Figure 8: Financial product ownership, October 2020
    • Men are more interested in investment accounts
      • Figure 9: Financial product ownership, by gender and age, October 2020
    • Loan products are far more present among emerging affluent
      • Figure 10: Financial product ownership, by gender and age, October 2020
    • Affluent adults have the most accounts – of all kinds
      • Figure 11: Financial product ownership, by household investable assets, October 2020
  6. Companies and Brands – Key Takeaways

    • Fidelity launches zero-fee ETFs
    • Robo-advisors and low-fee planning put new pressure on margins
    • Credit card rewards programs match new COVID-19 spending habits
  7. Competitive Strategies

    • Fidelity launches zero-fee ETFs
      • Figure 12: Fidelity Zero online ad, December 2020
    • Robo-advisors and low-fee planning put new pressure on margins
    • Credit card rewards programs pivot with COVID-19 spending habits
  8. The Consumer – Key Takeaways

    • Emerging Affluent and Affluent consumers use most financial products
    • These consumers have half-million of investible assets
    • Having already achieved many goals, opportunity lies in the process
    • Location still major factor in bank choice
    • Opportunity for credit card rewards to attract affluent consumers
    • Firm reputation drives choice of investment company
    • Financial advisors most trusted source of financial information
    • Opportunities for more financial advice
    • Emerging affluent and affluent consumers are confident
  9. Financial Goals

    • Affluent consumers already achieved many financial goals
      • Figure 13: Financial goals, October 2020
    • Younger men looking to buy home and vehicle
      • Figure 14: Near-term financial goals, by gender and age, October 2020
    • Younger women aspirational about second home
      • Figure 15: Long-term financial goals, by gender and age, October 2020
  10. Factors Influencing Bank Choice

    • Location still major factor in bank choice
      • Figure 16: Factors influencing bank choice, October 2020
    • Mobile banking and service crucial for Millennials
      • Figure 17: Factors influencing bank choice, by generation, October 2020
    • Emerging affluent seeking better rates
      • Figure 18: Factors influencing bank choice, by household investable assets, October 2020
  11. Factors Influencing Credit Card Choice

    • Credit cards rewards programs draw affluent consumers
      • Figure 19: Factors influencing credit card choice, October
    • Interest rates most important to affluent Millennials
      • Figure 20: Factors influencing credit card choice, by generation, July 2020
  12. Factors Influencing Investment Company Choice

    • Investment companies chosen based on firm reputation
      • Figure 21: Factors influencing investment company choice, October 2020
    • Men are more concerned about investment company cost
      • Figure 22: Factors influencing investment company choice, by gender, October 2020
    • More investible assets mean more desire for services
      • Figure 23: Factors influencing investment company choice, by investible assets, October 2020
  13. Trusted Sources of Financial Information

    • Financial advisors most trusted source of financial information
      • Figure 24: Most trusted sources of financial information, October 2020
    • Women trust the human element
      • Figure 25: Trusted sources of financial information, by gender, October 2020
    • Alternative sources gain trust among younger audiences
      • Figure 26: Trusted sources of financial information, by generation, October 2020
    • Households with highest investible assets more likely to trust an advisor
      • Figure 27: Trusted sources of financial information, by household assets, October 2020
  14. Attitudes toward Financial Advice

    • Most don’t regularly seek out financial advice
      • Figure 28: Attitudes about financial advice, October 2020
    • Young men comfortable outsourcing investments
      • Figure 29: Attitudes about financial advice, by gender and age, October 2020
  15. Attitudes about Mobile Finance

    • Mobile finance not crucial, but trends younger
      • Figure 30: Attitudes about mobile finance, October 2020
    • Millennials want mobile, frequent service
      • Figure 31: Attitudes about mobile finance, by generation, October 2020
  16. Attitudes about Personal Wealth

    • Emerging affluent and affluent consumers are confident
      • Figure 32: Attitudes about personal wealth, October 2020
    • Perceptions of wealth and success evolve with age
      • Figure 33: Attitudes about personal wealth, by generation, October 2020
    • More assets not necessarily linked to more happiness
      • Figure 34: Attitudes about personal wealth, by investible assets, October 2020
  17. Appendix – Data Sources and Abbreviations

    • Data sources
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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Data

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