Understanding retirement issues has long been a challenge for consumers. But, they are looking to financial advisers to better understand retirement issues, according to a new LIMRA survey.
Findings from the survey of 918 Americans who are either the primary financial decision-makers or share responsibility for making financial decisions indicate that more than a third of Americans trust financial advisers most to better understand retirement issues. Current retirees were more likely to say they would trust financial planners/advisers to assist them with investing retirement assets than helping generating retirement income or managing risks and expenses in retirement. Younger consumers, however, were more likely to trust family, friends and coworkers to help them better understand investing retirement assets, according to LIMRA. They are also slightly more likely to trust multiple sources of information, including their employers, financial websites and the company managing their employer-sponsored retirement plan, for some retirement issues.
Fewer consumers said they would seek advice about generating retirement income or managing risks and expenses in retirement. “Many of today’s retirees and future retirees will not be able to depend on a pension or a retirement health plan,” said Matthew Drinkwater, associate managing director, LIMRA retirement research. “So it is particularly troubling to see that consumers are not as interested to learn how to generate retirement income or manage risks such as health care, which will be essential for financial security in retirement.”
Prior LIMRA research has found that less than 50 percent of Americans plan for more than 20 years in retirement and few have planned for how they will pay for health care, long term care, rising taxes and inflation or the biggest risk many will face: outliving their assets.
“Our survey found that more 4 in 10 consumers felt they were not well-informed about generating retirement income, investing retirement assets, and managing risks and expenses in retirement,” Drinkwater said. “The good news is people are willing to turn most often to financial planners/advisers to seek help when planning for retirement.
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