Seven in 10 financial advisors in a poll by U.S. News say their clients can make progress toward their retirement readiness goals in the next 12 months, even as retirement news is full of concerns over Social Security cuts, rising inflation and market volatility, with retirement seeming out of reach for many savers.
Fifteen percent of advisors said their clients will be much better prepared for retirement, while 57% said they will be somewhat prepared.
The survey, conducted between July 29 and Aug. 21, asked financial advisors in U.S. News’ and AdvisorFinder’s networks questions focused on client financial stability and practice management.
Half of respondents said they expect their clients’ tax burdens to improve over the next 12 months. Eleven percent said clients would have a much lighter overall tax burden, and 39% said it would be somewhat lighter.
Only 7% of advisors foresaw a somewhat heavier burden.
U.S. News noted that major provisions of the recent tax and spending megabill include permanently extending rates and brackets associated with the 2017 tax overhaul, the pullback of many green energy tax credits, a special deduction for seniors and tax exemptions for overtime pay and tips.
Broad AI Uptake
Eighty percent of advisors reported that they are using artificial intelligence in their practices. The survey found that AI use remains high across all age groups, including among older respondents.
Although senior professionals may have a reputation for resistance to technology, the survey showed that this does not appear to be true with advisor AI tools. Here’s how advisors said they use these tools in administrative work and client outreach:
- Meeting notes or proposal generation — 65%
- Client communications (chatbots, email drafts) — 41%
- Investment research and idea generation — 38%
- Document processing or data entry automation — 30%
- Content copywriting and social posts — 30%
They use AI tools less commonly for more complex tasks, such as compliance and regulatory monitoring and practice management.
Asset Growth Optimism
According to the survey, advisors generally expect their firm’s net assets under management to grow in the next 12 months.
Fifty-nine percent of respondents said they expect asset growth of more than 10%, 39% anticipated growth between 1% and 10%, and 2% said growth would remain flat.
Older advisors were more bullish on asset growth prospects, with 67% of respondents 45 to 64 expecting growth above 10%, compared with just 36% of advisors younger than 45.
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