Most pre-retirees don’t work with a professional financial advisor –if they did, they’d likely be more confident in their ability to retire comfortably, new LIMRA research suggests.
The organization has found that two-thirds of pre-retiree households — defined as ages 55 to 70 — do not have a professional financial advisor. When asked if they felt confident in their ability to live whatever retirement lifestyle they choose, 63% said they were not.
By contrast, pre-retirees who do have an advisor were three times less likely to say they felt unprepared for retirement when compared with their advisor-less peers. And 54% of those who work with an advisor said they felt confident in their ability to live the retirement lifestyle of their choice.
“With so much uncertainty in the economy and in the social programs supporting retired Americans, pre-retirees face many challenges when preparing for retirement,” says Marie Rice, corporate vice president and director of LIMRA Retirement Research. “Our research is clear, those who use professional financial advisors enjoy the peace of mind that they are making the appropriate decisions to ensure they have a financially secure retirement.”
Prior LIMRA research has found that less than half of pre-retirees have adequately saved for retirement. In fact, 55% have less than $100,000 in household financial assets. In addition, research shows that less than half of pre-retirees have considered the implications of outliving their income. LIMRA estimates that about 30 million Americans are dangerously unprepared for retirement.