Wealthy Americans are just as concerned with their retirement readiness as the rest of the population, even though their financial assets might be a great deal higher than average. However, according to a recent LIMRA Secure Retirement Institute report, wealthy investors who consult with an advisor are more likely to have their concerns assuaged.
The LIMRA research, which studied Americans with assets of more than $500,000, identified four predictors to lifetime loyalty. Advisor accessibility ranked at the top, but other predictors included consolidation of 50 percent or more of client assets with the advisor, long-standing relationships of at least 10 years, and client involvement and engagement in retirement planning.
According to the survey report, as confidence and preparation increases, it starts a positive cycle that benefits both client and advisor. Advisor involvement inspires confidence, that confidence leads to increased satisfaction, more satisfied customers trust their advisors more fully, and that trust creates more business. According to the report, more than half of wealthy customers (55%) consolidated three-fourths or more of their assets with an advisor who came up with a written retirement plan.
It also appears that client-advisor collaboration increases trust. The LIMRA study also shows that when affluent consumers are deeply engaged in their personal retirement planning, 60 percent say that their trust in their advisor increases. That collaboration also increases perception of improved financial results. According to the study, six in 10 wealthy Americans felt that their advisors achieve improved results if they’re involved in the planning. And conversely, the less engaged affluent consumers are in retirement planning consultations, the less they trust their advisor. Less involved clients are less engaged and believe their advisors provide less value to what they could achieve on their own.