A new study finds that while 88% of Americans say working with a financial professional would be helpful, only 44% of Americans are actually doing so.
According to Allianz Life’s Annual Retirement Study, many Americans believe a financial professional could help ensure they’re able to financially support all the things they want to do in life. Among those not working with a financial professional, there’s high interest in talking with one about their financial worries, including how to take distributions from their retirement savings for retirement income (78%) and not having enough money to do what they would like to do in retirement (75%).
Yet fewer people are working with a financial professional this year than previous years. Only 44% are currently working with a financial professional, compared to 48% in 2022 and 49% in 2021. Millennials saw the largest drop, from 46% in 2022 to 36% this year, even though they’re the generation most likely to say working with a financial advisor would be helpful (92%).
“Financial professionals need to be clear that they are open to collaboration and solutions outside of what they usually offer. It’s about meeting clients where they are, mentally and emotionally, and finding out what keeps them up at night.”
Allianz Life’s Kelly LaVigne
Even those that are working with an advisor say they’re not discussing important subjects, like longevity or healthcare costs. Among their reasons are that they’re using other resources to find solutions (28%), are not aware their financial professional could help them with it (15%), or don’t meet regularly enough with their professional to talk about these things (20%). Others said they’re worried their financial professional will just try to sell them something (14%) or they’ll be judged or are too embarrassed (16%).
“Financial professionals need to listen to what consumers are saying in this data,” said Kelly LaVigne, vice president of consumer insights at Allianz Life, in a statement. “In the past, playing to your strengths in terms of product selection may have been a winning strategy, but financial professionals need to be clear that they are open to collaboration and solutions outside of what they usually offer. It’s about meeting clients where they are, mentally and emotionally, and finding out what keeps them up at night.”
Most Americans (57%) say they want a financial professional who proposes solutions but allows them to ultimately make their own financial decisions. One-third would be more likely to work with a financial professional who is understanding of their beliefs and values and knows how they might impact their finances.
Others said they’d like to work with an advisor who is empathic toward their financial struggles (30%) and knows them as a person (34%). Consumers would also like recommendations that reflect their actual life and desires, instead of a financial ideal (39%).
“Consumers’ desire for financial advice is as strong as it’s ever been, but financial professionals need to think more broadly about their role,” LaVigne said. “To successfully serve the next generation of clients, financial professionals need to focus on collaboration, flexibility, and truly understanding their clients’ values, priorities, and concerns.”
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