Financial advisors’ older clients may want to hear about college savings.
Researchers at a unit of Hartford Financial Services Group Inc., Hartford, have presented figures supporting that conclusion in a summary of a survey of 300 U.S. parents and 102 U.S. grandparents who have financial advisors.
The parents who participated are more interested in 529 college savings plans and more likely to contribute to the plans than grandparents are, but researchers found that a significant minority of grandparents also have an interest in 529 plans.
About 81% of the parents who participated in the survey said they have discussed college savings with an advisor, and 45% said they have invested in 529 plans. About 22% definitely or probably will invest in 529 plans in the future.
Only 45% of the grandparents surveyed have discussed college savings with financial advisors, but 25% already have invested in 529 plans, and 6% definitely or probably will invest in 529 plans in the future.
The figures suggest that grandparents may account for about 10% to 20% of the 529 plan market.