When people don't turn to financial advisors to help them make retirement plans, it's mostly because they believe they can do it themselves, according to research by The Insured Retirement Institute.
Seventy-one percent of investors surveyed, a majority, said they were go-it-alone investors. Only 21 percent of investors cited cost as a barrier to hiring a financial advisor and 16 percent said that trust was the major impediment.
The Insured Retirement Institute conducted a survey of 800 investors with at least $25,000 in investable assets in February 2014 trying to determine what types of conversations clients were having with their advisors.
Recommended For You
It found that when investors turn to financial advisors for retirement help (which they are in increasing numbers), they were most interested in speaking with them about retirement planning and investing. Other issues included taxes, estate planning and insurance coverage.
The survey reinforced the industry assumption that people are not very knowledgeable about investment products, including stocks, bonds and target-date funds.
Clients are more satisfied with their advisors when they have personal interactions, such as one-on-one meetings and telephone calls. Eighty-seven percent of investors said they were satisfied with in-person meetings and 80 percent were satisfied with telephone conversations, IRI found.
When it comes to retirement planning, 83 percent of investors said their advisors have discussed with them how much they need to save and 80 percent said their advisor discussed their retirement age. Advisors also talk about retirement lifestyle issues, such as housing and relocation, long-term care needs and Social Security claiming strategies.
Tax deferral is an important feature to 89 percent of investors surveyed, with 35 percent of those saying it is "very important."
The Insured Retirement Institute (IRI) represents the retirement income industry. IRI leads a national consumer coalition of more than 20 organizations and is the only association that represents the entire supply chain of insured retirement strategies.
Also read:
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
