Advice by Planner Type

The research at Goldman Sachs Asset Management highlights the four main groups of retirement planners enrolled in workplace plans, including the do-it-yourself (DIY) planner, the passive investor, and the advice seeker, who all manage their money themselves. The research also spotlights the reliant saver, who pays a financial planner to oversee their savings.

Its analysis found that savers who seek advice tend to be more engaged, confident, and likely to increase savings overtime. According to the study, 53% of DIYers have less than $100,000 in savings compared to 12% of advice reliant savers, while 27% have over $500,000 in savings compared to 55% of advice reliant savers. Furthermore, 57% of DIYers report being on track or ahead of schedule compared to 72% of advice reliant savers, while 43% report being behind compared to 28% of advice reliant savers, further highlighting the savings gap, Goldman Sachs reports.

When looking at who is most likely to have a plan ready for retirement, 82% were advice reliant savers, 66% were advice seekers, 45% were passive investors, and 43% were DIYers.

The findings present an opportunity for plan sponsors and advisers to work with an underserved cohort—especially as 49% of DIYers say they would likely work with a personalized digital retirement planner to build a tailored retirement strategy. DIY respondents also showed greater interest in digital and/or hybrid advice services (37%), as more employers move to a multi-channel approach that mixes digital and in-person interactions when offering advice. This also includes services that offer help with budgeting, debt management, taxes and estate planning, wealth accumulation strategies, home buying, and student loan management.

“There was a period of time where everything was going very digital. As you see from some of the studies, some of that education isn’t always there to enable people to really put themselves forward,” said Nancy DeRusso, head of wellness and financial planning for Goldman Sachs Ayco. “I think what we’re really seeing is a consolidation of benefits by employers. You’ve seen this fragmentation of 401(k) providers providing advice, financial wellness providers provide advice, financial planning, stock plan administrators, etc.”