Try and figure this one out—a perceived lack of savings prevent people from saving.
It therefore follows that starting sooner is better, according to new research from TIAA. Almost 60 percent of adults say a first meeting with an advisor should be before age 35—and it jumps to 80 percent among Gen Y.
Additionally, 35 percent of Americans who haven’t worked with a professional financial advisor blame a lack of money to invest. Almost half think they need more than $50,000 to justify meeting with an advisor.
Specific to 401(k)s, three in four workers say they would be more likely to consider a job if it offered “no-cost financial advice as part of a benefits package.” The figure increases to 87 percent among Gen Y.
And when asked to select among various employee perks, financial advice was by far the most popular. Thirty-three percent say they would like access to an advisor, compared to 17 percent who prefer on-site medical care and 12 percent who want free lunch prepared by an on-site chef.
“Gen Y really wants financial advice, and companies are doing their best to attract top young talent. So it makes sense for employers to add advice to their benefits,” Kathie Andrade, CEO of TIAA’s Retail Financial Services Business, said in a statement. “Pairing a well-designed retirement plan with strong education and support can go a long way in helping companies attract well-qualified employees and set them on the path to success.”
What else might motivate individuals overall to seek advice?
- A clear understanding of how they would be charged for advice.
- Recommendation from friends or family.
- Assurance that the advisor is qualified to help them.
- Assurances that the advisor would not try to sell them any particular product, service or investment.
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.
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