Nearly half of Americans believe they need a sizable nest egg to justify working with a financial advisor, according to new research.
TIAA-CREF discloses this finding in a summary of results from its 4th annual “Advice Matters” survey. Conducted by KRC Research, the online survey polled 2,000 U.S. adults ages 18 and older in August.
According to the study, 45 percent of respondents think they need at least $50,000 in savings to merit working with an advisor. Of those who have never received professional financial advice, 63 percent say, “I don’t have enough money to invest” as a reason.
However, the research also finds that respondents who have met with an advisor are significantly more confident in their retirement savings plan than those who have not (78 percent versus 43 percent).
About one-third of respondents who have received professional financial advice report they:
subsequently changed their asset allocation in their retirement plan (37 percent)
increased the amount set aside in savings (36 percent)
decreased spending (29 percent)
monitored their savings more frequently (32 percent) and established a plan for paying off loans or managing debt (28 percent).
Survey respondents who have discussed retirement with an advisor are more likely to “run the numbers” and calculate how much income they will need in retirement: 79 percent versus only 32 percent who have not met with an advisor.