Advisers fear for clients’ retirement prospects
In a survey taken last month, 88% of advisers said their clients were not prepared for a timely retirement due to market depreciation compared to 46% of advisers who thought their clients were still on track at the start of the year.
In a survey taken last month, 88% of advisers said their clients were not prepared for a timely retirement due to market depreciation compared to 46% of advisers who thought their clients were still on track at the start of the year.
The Brinker Capital Retirement Indicator was an online survey completed by Berwyn, Pa.-based Brinker Capital Inc. based on responses from 221 advisers.
Of the 88% of advisers who said their clients were off-track for a timely retirement relative to their expectations a decade ago, 74% said it would take between one and five years to make up the retirement shortfall.
Advisers said by far the largest reason that clients were off -track for retirement was because of market depreciation.
Meanwhile, 75% of advisers said they noticed a stark difference between clients’ responses on their risk tolerance questionnaires and the actual risk they’re willing to take.
When asked if there should be a reassessment of the way clients’ risk tolerance was measured, 76% said yes.
Also, the study showed that 65% of clients have become more vocal about the investment process since the market fell.
Additionally, 44% of advisers have seen an increase in their clients tapping into their retirement savings to provide liquidity for the near term.
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