June 26, 2013

What Makes Clients Happy? A Good Retirement Plan

90% of investors working with financial advisors are happy with their retirement income plans, according to a recent survey of 2,000 individuals

Americans that work with a financial advisor are twice as happy about and confident in their retirement plans as those not working with an advisor, according to a study released Wednesday by Franklin Templeton.

The 2013 Franklin Templeton Retirement Income Strategies and Expectations survey found that 90% of investors working with advisors are pleased with their retirement income plans, and 87% are confident in these plans. Just 44% of investors who are not working with advisors say they are happy with and confident in such plans.

“The findings confirm that the most essential emotions surrounding retirement income planning—happiness with, confidence in, as well understanding one’s plan—are all increased substantially when you work with a financial advisor,” said Michael Doshier, vice president of Retirement Marketing for Franklin Templeton Investments, in a press release.

For the study, some 2,000 adults 18 and older completed an online survey in January.

Investors who work with advisors are much more likely to understand their retirement income plan (86%) versus investors who don’t (48%). 

“Retirement income planning can be overwhelming, and professional assistance goes a long way in not only achieving financial goals, but feeling good about the process,” Doshier said.

More than half of investors who completed the survey, 58%, cited experience with retirement planning as the most important factor when selecting an advisor. Plus, the same number, 58%, who had developed a written retirement income plan said they understood how much of their current income would be replaced by Social Security.

In addition, over half (51%) indicated that they would switch financial advisors or begin working with one for the first time if an advisor developed a written retirement income strategy for them. This was particularly true for investors in their key asset-accumulation years, specifically, 65% of those 35-44 and 62% of those ages 25-34. 

When asked what they most want most from an advisor, investors said:

  • A retirement income plan to meet their expected expenses, 33%;
  • An understanding of their goals, concerns and fears about retirement, 23%; and
  • A selection of investments to match their retirement income plan and risk tolerance, 19%.

Over the next five years, close to a third (31%) of investors expect to change their retirement strategy, while 22% plan to make changes in their retirement investments. Also, 13% anticipate beginning to work with a financial advisor for the first time.

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Check out Median Retirement Balance Is $3,000 for All Working-Age Households on AdvisorOne.

 

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