“Financial advice is everywhere, but trust is not.”
So said Gregg Holgate, head of inforce management and client engagement for Transamerica Savings and Investments, in releasing a new research paper on investors and the financial information sources they rely on.
Readily available financial tools and content are increasingly abundant, but financial literacy levels have remained static, according to the paper, by Transamerica in collaboration with the MIT AgeLab.
The research findings are based on an online survey that DialSmith conducted between Oct. 29 and Nov. 16, among 1,326 U.S. adults with household incomes between $50,000 and $200,000.
More than half of study participants expressed high confidence in their financial acumen, yet only 51% answered four of five basic financial literacy questions correctly.
A question about retirement readiness also showed a wide discrepancy, with 90% of respondents considering retirement savings very or extremely important, but 26% saying they expect never to fully retire.
Respondents cited internet searches and family and friends as their main sources for financial guidance but said they most trust financial professionals and banks. Financial professionals had a mean trust score 30% higher than social media.
“By understanding what resources people turn to, and why, we can offer more tailored education and support to meet them where they are,” Holgate said.
The paper also highlights the importance of tailored financial education and the role of financial professionals in bridging the gap between confidence and competence.
See the accompanying gallery for seven findings on advisor use and trust across demographics.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.