It’s time for financial planners to reach out to Gen X.
A whopping 77% do not turn to financial advisors to help them plan for retirement, according to a study released Thursday by the Insured Retirement Institute. That’s up from 63% in 2012.
Among Gen Xers with $75,000 or more in income, 65% do not work with advisors or financial planners.
Those that do have a relationship with an advisor have saved more — much more: $90,400 on average, or close to twice the $45,500 saved by households not working with an advisor.
As for Gen Xers working with an advisor, 23% have $200,000 or more in the bank for retirement, compared with 12% among those not working with one.
Still, there’s time for the industry to help Gen Xers turn the situation around.
“It appears the lasting effects of the recession and prolonged labor market woes are taking a hit to Gen Xers’ confidence and their savings,” said IRI President and CEO Cathy Weatherford. “Fortunately, with most Gen Xers still at least two decades from retirement age, there’s time to steer them back on track toward retirement security. It will begin with increasing education, which can lead to better savings behaviors and better retirement outcomes.”
Few Gen Xers say they have high levels of knowledge about financial matters (30%), the study finds. Even fewer, 11%, consider themselves to be highly knowledgeable about investing in securities.
Such figures point to the benefit Gen Xers could derive from professional financial advice, IRI notes.
Why So Few Advisor Relationships?