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Franklin Templeton Survey: Clients Who Work with Advisors are More Knowledgeable about Retirement Needs

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Americans who work with a financial advisor are more likely than those who don’t to know how much of their savings they’ll need to withdraw annually in retirement, a new survey finds.

Franklin Templeton Distributors, Inc., San Mateo, Calif., a wholly-owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), published this finding in a new Franklin Templeton Retirement Income Strategies and Expectations (RISE) survey. Conducted in September by ORC International’s Online CARAVAN, New York, the online poll sampled 2,046 adults comprising 1,020 men and 1,026 women 18 years of age or older.

Two-thirds (66%) of those who work with a financial advisor know how much of their retirement savings they will withdraw annually in retirement, the report says. Among Americans who have never worked with a financial advisor, only 36% say they know how much they will withdraw annually.

In addition, more than a third (35%) of those who have never worked with an advisor say they do not think about how they will approach different sources of retirement income.

Additional survey findings include:

Among respondents not using an advisor, 41% say the reason is because they don’t think they have enough money to need one. And 30% say it is because they prefer to do financial planning themselves.

38% who have never worked with a financial advisor say Social Security will provide the most income during retirement,  twice as many as those who do work with a financial advisor (19%).

While 35% of respondents who have never worked with an advisor indicated that running out of money is their top concern, among those who have worked with an advisor (currently or in the past), that same concern fell to 24%.

13% who work with a financial advisor say that IRAs will provide the most income during retirement (versus only 4% of those who have never worked with one).