Employees seeking financial guidance prefer personalized assistance from a financial professional, even as the use of digital financial learning tools has increased significantly across the workforce, UBS reported Monday.
Sixty-two percent of baby boomers and 49% of Generation Z respondents to a survey said they preferred human advice over digital guidance they could find on their own, while 38% of millennials and 41% of Gen Xers said the same.
Millennials and Gen Xers were the most likely to prefer a mix of both types of advice, with 43% of millennials and 40% of Gen Xers saying this.
Nine in 10 respondents who prefer human advice said that a human advisor can offer tailored guidance that aligns with their personal goals, reassure them during uncertain times and help them make more confident financial decisions.
They also said that a human advisor can help them make sense of their company's benefit plan options and how those fit with their overall financial life.
Digital advice is coming on strong, the survey found, with 67% of employees saying their reliance on digital tools had increased over the past two years.
Three-quarters of employees said they were very comfortable using digital sources for answers to financial questions, including 64% of working boomers.
These are their main sources of digital advice:
— Online search engines, 50%
— YouTube, 47%
— Social media, 40%
— AI tools, 38%
The survey findings were based on responses that UBS received in December from 2,000 employees with at least $5,000 in investable assets.
Advice Employees Want
When financial education is made available to employees, 91% said it should be highly customized to their financial needs. To achieve this, 76% said they were willing to share personal information, with millennials and Gen Xers most inclined to do so.
Nine in 10 respondents said ongoing human support is also essential, and three-quarters said they do not need to be incentivized to participate in a financial education program.
Overall, surveyed employees expressed most interest in learning about effective retirement and healthcare savings strategies, followed by overall financial planning insights, insurance and investing principles.
While most respondents said companies have a responsibility to help them reach their retirement goals, 28% of private industry workers reported that they do not have access to employer-sponsored retirement benefits.
The survey also found that many employees with access to employer‑sponsored retirement plans rely on other ways to help meet their retirement goals — savings accounts, investment accounts, insurance, individual retirement accounts and health savings accounts.
Those who opt out of participation in available employer‑sponsored retirement plans cited a range of reasons: They may be saving in other nontraditional ways, feel they are too young to focus on retirement, are unsure where to start or feel constrained by existing debt.
A majority of respondents viewed equity awards as important to their financial well‑being, yet those who receive them often find them complex and difficult to navigate, the survey found. Many worry they are not maximizing their value.
Nearly all plan participants look to their employers for resources to help them understand and manage their equity awards. Others seek support from financial professionals, and more and more are turning to digital sources.
Inheritance is becoming an increasingly relevant financial issue for employees, according to the survey. Thirty-nine percent of respondents reported that they expect to receive an inheritance, and nearly all expect it to have an influence on their financial well-being.
However, only 49% said they feel highly prepared to manage an inheritance after they receive it.
Protecting and building their wealth and ensuring that it is successfully transferred are employees' top priorities after receiving an inheritance, according to the survey.
When it comes to making decisions about this newfound wealth, 55% of employees said they will turn to a financial professional for guidance.
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