If Americans could get a financial planning mulligan, do you think they’d focus a little more on contributing to their 401k and an increased focus on saving for retirement the second time around?
A new study released Sept. 24 in advance of October being “Financial Planning Month” found the majority of Americans are stressed about their financial situations, with 3 out of 4 wishing they could get a financial planning do-over.
According to the survey of more than 2,000 adults ages 22-64 by the National Association of Personal Financial Advisors (NAPFA), the outlook isn’t all grim: Americans are hopeful about their retirement options (even if they can’t get that mulligan). Despite feeling stressed, Americans still associate the idea of retirement with the words: “dream” (36%), “joy” (36%) and “reality” (31%).
It’s no wonder so many are stressed, though, as the survey found more than half of respondents have not considered their options for retiring, and 1 in 3 do not think they’ll ever be able to retire.
The study—which was commissioned to evaluate the financial health of Americans—reveals that 34% of respondents believe finances will remain a source of stress in their futures and 22% worry they will not enjoy their senior years due to money issues.
The good news, Chicago-based fee-only financial planner advocacy organization NAPFA says, is that Americans believe a financial planner can help. In particular, respondents want guidance on planning for retirement (61%), building greater savings (52%) and paying off their debts (50%).
“With all the uncertainty in the economy right now, it is more important than ever for consumers to have their finances in order,” says Geoffrey Brown, NAPFA CEO. “While none of us can go back in time to change our financial situations, we always have the power to make positive changes for our future.”
Having a financial plan with specific goals can make a big difference in how consumers spend their time now and in the future. Survey results show that Americans believe working with a financial planner will make them feel secure (37%), empowered (28%) and excited (26%).
“The right guidance and professional advice can help make financial planning feel approachable,” Brown says. “With 54% of Americans not knowing where to look for a financial planner, it is our job to make it easy for them. We encourage consumers to look for a fee-only financial planner who will consider all the aspects of their unique financial situation.”
As fiduciaries, fee-only financial planners must put the client’s interest ahead of their own.
Additional survey findings are available here.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
