Gen Y Looking for Financial Independence, Not Traditional Retirement

Unlike other working age segments, Gen Y respondents were the only group to be more likely to invest in a brokerage account than in a DC plan, according to the survey.

Previous surveys have found young investors to be surprisingly conservative, and this survey is no different. Hearts & Wallets found Gen Y is holding 70% of assets in cash.

"The challenge for Gen Y is many are not focused on how they save," Laura Varas, Hearts & Wallets LLC principal, said in a statement. "Often they invest too conservatively to accrue sufficient resources for later in life. To connect, providers and advisors need to talk about financial independence and short-term goals since many Gen Yers aren't specifically working toward a goal of retirement."

The survey found two-thirds of affluent Gen Y respondents are willing to pay for financial advice. An earlier survey, conducted in 2013, found that younger investors want to use online tools and apps as a complement to financial advice they receive from a professional, not a substitute. That survey found they're more likely to pay for advice once they have more stability in their lives. "They're attracted by provider competence, credibility, and the possibility of having more successful investing. True delight comes when they perceive the provider really cares about them and understands them," according to the report.

The current survey confirmed that younger investors are using both advisors and technology. Forty-five percent of respondents said they prefer to use technological tools as well as a professional advisor. Almost 30% said they visit online sources for financial information, and 35% use planning tools or calculators. Furthermore, 27% go to social media for information on investing or finance.