More investors are seeking retirement planning expertise, yet not enough existing firms are offering complete long-term planning services.
Research company Herbers & Company surveyed 1,598 consumers and 724 financial advisors, finding that while 72% expressed a desire for retirement planning support, only 67% of advisors offered comprehensive retirement planning services.
“Advisors should see this as an opportunity — a moment to not only bolster their existing tax and retirement planning services but to innovate and adapt, ensuring they remain trusted partners in their clients’ financial journeys,” said Angie Herbers, managing partner of Herbers & Company, in a statement.
The research also found that firms tended to misalign their definitions of all-inclusive wealth management services: Although 77% of advisory firms self-identified as comprehensive wealth management firms, Herbers & Company revealed over 250 differing combinations of services that advisors believe make their firms comprehensive. As a result, the research calls for the industry to accurately define their services in order to minimize consumer confusion.
Other individuals noted an interest towards advice on cryptocurrency. In fact, 10% of investors with $250,000 or more in investable assets said they would want to receive guidance on crypto, yet none of the surveyed advisors in Herbers & Company’s research offered the service. Herbers & Company goes on to add that while advisors may tend to stray away from the investments due to its risk factor, offering the service could allow professionals to “have deeper conversations with clients about the pros and cons of emerging asset classes, ensuring they remain relevant and adaptable to the evolving financial landscape.”
Individuals were less drawn towards other services that more advisors provide, including investment management. Despite the fact that two-thirds of firms provide investment management services, only half of investors surveyed said they were interested in the offerings. Herbers & Company suggests advisors diversify their services in order to accommodate a wide-range of investors’ interests and concerns.
“The insights from this study underscored a clear disparity between what the industry offers and what clients truly want,” added Herbers. “It’s evident that the emphasis on traditional investment management services is not resonating as strongly with today’s investors. Now, there’s a need to recalibrate and offer services that align more closely with investors. The firms that do so will have a competitive advantage.”
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