A new study by TIAA-CREF demonstrates that a rising number of Americans are interested in receiving professional financial advice. The percentage of those interested in knowledgeable, third-party input increased from 24 percent to 35 percent. But despite that, an alarming number (65%) of fiscally responsible consumers still say they are not interested in receiving financial advice; and that’s a dangerous situation, considering that most Americans are not prepared for retirement.
Many are not fully aware of the importance and benefits of professional financial advice. Consequently, they might miss out on many opportunities and available benefits that such advice can provide. While two-thirds of those surveyed feel confident about their current financial status; 86% of those who have received such fiscal advice do take positive actions, a very promising statistic.
TIAA-CREF’s third annual Financial Advice Survey polled a random sample of 1,000 adults nationwide to determine their attitudes, preferences and behaviors when it comes to financial advice.
“Those who aren’t interested in advice may not know what it includes or how valuable it can be. Sound advice begins with the advisor’s deep understanding of your situation and your financial needs and goals. Based on that, the advisor can provide recommendations on how much to save, how to diversify investments, or what financial solutions make sense for your situation. Building a relationship over time with an advisor who knows you and your financial needs can help you navigate changes over the course of your life,” said Eric Jones, senior managing director of advisory solutions at TIAA-CREF.
Roughly 62% of respondents changed their spending habits after receiving financial advice, and 46% increased the amount they contribute to their retirement.
Other positive behaviors that survey respondents reported after receiving advice:
- Making a plan for paying off loans (53%)
- Establishing an emergency fund (52%)
- Increasing the amount of money directed to retirement savings (46%)