A survey by TIAA-CREF shows that people receiving individualized financial advice (compared with general guidance) are more likely to act — yet many people find it hard to get that advice or think it's too expensive. Results varied by age group, gender and other factors. Those who did get advice and acted showed significantly greater results, realizing more than $200,000 in retirement savings over a 30-year period, the survey found.
While access to personalized advice is still an issue, there are programs which marry advisors and technology on an integrated platform backed by a call center — like the recently reported LPL offering — that seem to be well positioned to address these issues. Two things not noted in the survey: Some people are embarrassed by their lack of savings, and advisors need to approach first-generation ethnic groups differently because they tend to be savers, not investors. Prohibitions on plan fiduciaries working with participants in their plans — as proposed by the DOL, for example — will not help matters, since plan advisors may be the only advisors some people will ever meet.
