Planning Linked to Adviser Trust for Affluent Investors

How affluent consumers measure satisfaction with their advisers.

Six in 10 affluent consumers say trust in their advisers rises when they are deeply engaged in personal retirement planning, according to new research from the LIMRA Secure Retirement Institute. The study also found that 60% of these consumers believe their advisers achieve better results than they could if they went it alone.

Three in four affluent consumers expressed high satisfaction with their advisers. Satisfaction measures included the ability to reach the adviser when needed most, as well as transparency and clear communication—especially when discussing the cost and value of a service. Nearly half said they would like to work with their current adviser for life. 0

The study led LIMRA to identify four predictors to lifetime loyalty, according to Jafor Iqbal, assistant vice president at the LIMRA Secure Retirement Institute. “Adviser accessibility ranked at the top,” he notes, followed by consolidation of 50% or more of client assets with the adviser, relationships of 10 years or more, and client engagement in retirement planning.

“For affluent consumers, trust is more than delivering a strong investment performance,” Iqbal says. “Advisers who engage their clients in rigorous retirement planning gain their confidence, trust, and their loyalty.”

This study looked at Americans at three asset levels: $3.5 million-plus, $1 million to $3.5 million, and those under age 55 with assets of $500,000 to $999,999. These affluent consumers make up only 8.2 million households but own nearly $22 trillion in financial assets. LIMRA’s research says that 63% of affluent consumers work with an adviser on at least some portion of their portfolio.