What You Need to Know
- In a Northwestern Mutual survey, respondents with an advisor reported higher confidence in their financial situations than those who did not.
- They were more confident in their ability to plan for retirement and pay for an emergency and also in the stability of their employment, above other areas.
- The number of people seeking advice spiked in 2021 and held stable this year above pre-pandemic levels, Nationwide reported.
Sixty-two percent of Americans say they need to improve their financial planning, including 74% each of millennials and Generation Z, according to a study released Wednesday by Northwestern Mutual.
Only 35% of study participants, however, currently engage with a financial advisor. The study found significant differences in outcomes on financial and other matters between those with and those without an advisor. It found several areas in which respondents who had one felt more confident.
The study findings were not entirely bleak, according to Tim Gerend, chief distribution officer at Northwestern Mutual.
“Despite the fact that too many Americans are still not getting financial help, we saw a spike last year in the number of people seeking professional advice and those numbers have held stable in 2022 rather than sliding back to pre-pandemic levels,” Gerend said in a statement.
The study results showed that 18% of respondents who did not work with an advisor before the onset of the pandemic do so now or plan to do so, including 24% of millennials and 29% of Gen Z.