Consumers who rely on financial advisors are more likely to be saving in a retirement plan and to be saving at a higher rate than those without an advisor, according to a new study.
LIMRA, Windsor, Conn., published this finding in a summary of results from a new of survey. The study reveals that consumers who have financial advisors are more confident they will have enough to last throughout retirement than their counterparts.
LIMRA’s study found that 61% of consumers who work with an advisor contribute to a retirement plan or an IRA, while only 38% of consumers who don’t work with an advisor contribute to their retirement savings. Controlling for income, consumers who work with a financial professional are also more likely to contribute to a defined contribution plan or IRA.
LIMRA researchers attribute the difference to education: Financial advisors provide information, recommendations and guidance.