Just 4 out of 10 retirement plan participants use a financial adviser, with misperceptions over affordability and applicability driving their hesitancy, according to a survey by OneAmerica.
What is the roadblock to working with a financial adviser, according to the survey? Forty-three are concerned that they cannot afford fees; 41% believe that thy don’t have enough wealth; and 41% have not seriously considered the issue.
Only 22% of women reported working with a financial adviser, compared to the 57% of men. Survey results show that women are less likely to work with a financial adviser due to beliefs that they cannot afford the fees associated and that they aren’t wealthy enough to work with one. Inversely, of the men that don’t work with a financial adviser, the survey finds that men choose not to reach out to a financial adviser because they don’t believe they need assistance, or because they are worried about potential misconduct.
The 40% of participants who reported working with a financial adviser is a 5% increase from a survey OneAmerica conducted in 2013. And in the past five years, the company has seen the age of participants who work with a financial adviser trend lower.
In 2013, participants who worked with a financial adviser tended to be age 50 and older compared with the current study which shows that participants who work with a financial adviser tend to be age 35 and older.
Prior, OneAmerica research has identified that participants who work with a financial adviser are more likely to have calculated their retirement income need, are less likely to cite debt as a deterrent to contributing to their retirement plan, and appear to be more confident about their ability to maintain their current lifestyle in retirement.