Calling the DOL redefinition of fiduciary proposal a “rule in search of a problem,” an Insured Retirement Institute (IRI) study shows that people who use a financial advisor are better prepared for retirement. The proposed rule would deny access to a financial professional for 18 million lower and middle income investors, resulting in $240 billion lost from the system and 900,000 fewer IRA accounts, according to the study. The research also quantifies that investors are not concerned about the issues the DOL’s rule addresses and how much better prepared they are when using a financial advisor.
Highlights of the study include:
• 94% of those with an advisor save for retirement vs. 64% without one
• 71% of those with a financial advisor have a goal vs. 34% without access to one
• 65% of advised investors are engaged with their plan vs. 34% without one
• 80% of those with access to an advisor feel that they are better prepared as a result
• 75% would recommend their advisor to a friend or family member
• 80% of those advised are aware of potential conflicts, but the vast majority believe that their advisor acts in their best interest
• Less than 5% share the concerns that the DOL is trying to address in its redefinition of fiduciary rule.
