Advised Individuals More Prepared to Retire, per TIAA

Individuals looking to improve financial readiness may already know to turn to a professional financial adviser, but data highlight the stark differences in financial confidence between those working with and without advisers. According to a recent study by the TIAA Institute, “The Value of Financial Advice,” 92% of advised individuals across all income levels saved consistently, compared with 75% of individuals without advisers.

Additionally, 30% of advised individuals contributed to a retirement account, compared with only 17% of those without advisers. The unadvised were also nearly twice as likely to say that they could not afford to do so. 

Asked why they did not seek professional financial advice, more respondents were more likely to give reasons related to the perceived value of such advice than they were to cite a lack of trust in advisers.

Among individuals without an adviser, 47% said they did not seek professional financial advice because they did not have “enough income or assets.” For 44%, the benefits of using an adviser were not clear, and 42% said their financial situation was too simple to involve an adviser.

For plan advisers and plan sponsors, the findings from TIAA highlighted a growing need to demystify financial advice and challenge misconceptions that may be limiting participant engagement and retirement readiness.

“It really comes down to behavioral coaching—and specifically, the power of helping clients define, articulate and quantify their goals across every time horizon,” said Doug Ornstein, director and wealth management coach at TIAA Wealth Management, which offers personalized financial advice services, in an email to PLANADVISER. 

Those already working with a financial adviser reported increased levels of confidence in their financial readiness.

Across all income levels, 50% of advised individuals were confident they would live finically comfortable during retirement, compared with 31% of non-advised individuals.

When it came to other financial readiness factors, confidence persisted: 76% of individuals with advisers felt confident that they understood their financial situation, compared with 58% of individuals without an adviser. When asked if they felt financially prepared for their next stages in life, 63% of respondents with advisers across all income levels agreed, compared with just 46% of individuals without an adviser.

“Our research has identified that financial advice can deliver both quantitative and qualitative results, including higher confidence about future preparedness,” said Surya Kolluri, head of TIAA Institute, in a statement. “Importantly, while earlier is better, [getting] advice just before retirement can significantly improve retirement security.”

Individuals with an adviser also showed a wide range of financial product use: 61% of those advised said they had a retirement savings plan, compared with 41% of non-advised individuals. Also, 39% of individuals with an adviser said they invested in individual stocks or bonds, compared with 17% of those without advisers. Nearly one-quarter (24%) of advised individuals had a health savings account or health spending account, compared with only 12% of respondents without advisers.

“The study demonstrates that the value of advice is substantially greater than the cost of many financial products—and in an industry that has faced its share of public skepticism, that’s not a small finding,” said Ornstein in his email.

The survey, conducted in October 2025 by Edge Research in partnership with the TIAA Institute, included 1,864 U.S. adults between the ages of 18 and 79.