In a world of confusion about retirement planning, more than a third of Americans say they put their trust in financial advisors to explain the issues to them and help set a course, according to a new LIMRA study.
The organization released its results as America Saves Week comes to an end and players all along the retirement food chain seek to get workers reinvested and re-inspired in their retirement planning.
“Our survey found that more than 4 in 10 consumers felt they were not well-informed about generating retirement income, investing retirement assets, and managing risks and expenses in retirement,” said Matthew Drinkwater, associate managing director, LIMRA retirement research. “The good news is people are willing to turn most often to financial planners/advisors to seek help when planning for retirement.”
The LIMRA research also found that current retirees mostly seek out financial advisors for help in investing their retirement assets rather than generating retirement income.
Free-thinking younger workers, however, said they were more likely to trust the advice of family, friends and coworkers in making their financial decisions.
They are also more likely to shop around for their investment information, blending the input of their employers, financial resources on the Internet and their retirement plan sponsor, rather than a single advisor.
Drinkwater said he was also disappointed to see that fewer and fewer consumers seem interested in seeking advice about retirement income or handling retirement expenses such as health care.
Past LIMRA research indicated less than 50 percent of Americans have adequately prepared for the tangible reality of outliving their assets, much less paying for health care or rising taxes.
The current survey found that less than 35 percent of respondents feel they are saving enough to last throughout retirement, a figure that was true even for those with annual household incomes of more than $75,000.
Two-thirds say the still-faltering economy is to blame for their inability to save for retirement, as their expenses continue to outweigh their long-term financial planning.
“I hope our survey brings more attention to the need for all Americans to systematically save throughout their lives and then develop a comprehensive retirement plan that addresses all of the pitfalls that they may face in their later years,” Drinkwater said.