Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Retirement Planning > Saving for Retirement

Consumers With Advisors Better Off: LIMRA

By Danielle Andrus

X
Your article was successfully shared with the contacts you provided.

It probably comes as no surprise to advisors that consumers who work with a professional tend to be better off than those who go it on their own. A LIMRA survey released Wednesday confirmed consumers who work with advisors are more likely to be saving in a retirement plan and at a higher rate.

“We’ve all seen the scary statistics that not enough people are saving for retirement—a recent LIMRA survey revealed that almost half of Americans were not contributing to an employer-sponsored retirement plan or an IRA,” Alison Salka, corporate vice president and director of LIMRA Retirement Research, said in a statement.

The survey found that, regardless of income level, more than 60% of consumers who work with an advisor are contributing to a retirement plan or IRA, compared with just 38% of those without an advisor.

Furthermore, 61% of consumers who work with an advisor contribute at least 7% of their salary to their plan. Just 36% of consumers without an advisor save at this rate.

The guidance and education that advisors provide their clients to bring on these good saving habits translate to higher confidence, too. Of non-retired consumers with an advisor, half said their advisor provided guidance on how much to save. More than 70% of Americans with an advisor say they’re confident they’re saving enough. Just 43% of consumers without an advisor felt the same.

“It is clear that advisors make a difference,” Salka said. “It is vital that we as an industry better communicate the value of using an advisor to ensure a secure retirement—especially to younger consumers who are less likely to have a pension to rely on in retirement and, according to our survey, are also less likely to be saving for retirement.”

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.