A new survey finds that more than half of respondents say their main driver to begin working with a financial advisor was to plan smartly for retirement.
However, only half (51%) strongly agree that their financial advisor talks with them about what life will be like when they retire, and nearly one in five say their financial advisor does not talk with them at all about what life will be like in retirement.
The data reveal that twice as many investors value relationships with their financial advisors over performance. Only 32% of respondents felt that having a financial advisor who is focused on delivering superior investment performance is what’s most important.
The survey’s authors note that the most significant group that advisors have an opportunity to engage with is pre-retirees between the ages of 45 and 64. Roughly one-in-five (19%) of these respondents would like more personalized advice and to be cared about more as a person.
However, despite approaching retirement age, fewer than half (47%) of respondents in that age group strongly agree that their financial advisor talks about what life will be like when they retire.
Improvements Sought
The more than 500 survey respondents to the survey by Hartford Funds identified areas where they’d like to see improvement from their advisor:
- 22% wanted advisors to take more time on education about the financial planning process and their investments;
- 14% wanted more personalized advice; and
- 13% wanted advisors to care more about them as people, not just clients.
More than four out of five women (84%) strongly agree that their advisor actively listens to them, and nearly the same number (79%) strongly agree that their financial advisor provides them with the appropriate guidance for their individual needs. Women were also more likely than men (59% versus 44%) to strongly agree that their financial advisors speak with them about what life will be like in retirement, and three-quarters (74%) strongly agree they have a trusted relationship with their financial advisor both professionally and personally.
The survey of more than 500 consumers who currently work with financial advisors was conducted via phone in April 2015.
