Fully 64 percent of workers turn to their 401k plan provider as their first source for financial advice, including advice outside of retirement.
A new study of workers from T. Rowe Price titled, “Retirement Savings and Spending: Behaviors and Attitudes toward Financial Advice,” also found that among those workers, 68 percent are millennials, 66 percent are Generation X, and 55 percent are baby boomers.
Not surprisingly, attitudes about advice delivery differ between generations. Millennials prefer advice that is accessible on their mobile devices, Generation X wants advice services that fit into their busy schedules, and baby boomers cite ease of use as their primary concern.
As to be expected, millennial workers are the most comfortable with digital tools and calculators compared to other generations.
Sixty-four percent of millennials state they rely on them “somewhat” or “a great deal” compared to 55 percent of Generation X and 42 percent of baby boomers.
“As individuals juggle many financial goals, their need for financial advice has grown and we see many turning to their retirement provider for that guidance,” Aimee DeCamillo, head of T. Rowe Price Retirement Plan Services, said in a statement. “The availability of financial wellness programs alongside a retirement plan is more important than ever. Employers can support this growing need by offering access to educational resources, greatly influencing not just the retirement readiness of their employees but their overall financial health as well.”
Since 2017, the demand for advice has increased among the majority of the financial objectives listed in the survey that respondents cited as “major” or “minor.”
Three of the most cited objectives for which respondents identified a need for financial advice were related to retirement:
- saving for retirement outside of your workplace plan (74 percent),
- saving to fund health care expenses in retirement (74 percent), and
- saving for retirement through current workplace plans (71 percent).
Advice on how much to save was the most cited type of financial advice for a majority of the financial objectives, followed by tracking progress.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
