First the good news, almost nine out of ten Americans (88%) say that working with a financial advisor would help them reach their financial goals including planning for a comfortable retirement.
The bad news? The reality is that just 44% are doing so according to an annual retirement study by Allianz Life Insurance Co. of North America – and the percentage is down from 48% in 2022.
The challenge for advisors is how to convert aspiration into action and onboard those who want advice on matters such as how to take distributions from retirement savings for their retirement income (78%), and not having enough money to do all the things they want to do in retirement (75%).
The core working age cohort of millennials has seen the steepest drop in use of financial professionals, from 46% in 2022 to 36% in 2023, which is curious given that this group is also most likely to see the value in working with an advisor to ensure their finances support their life goals.
Respondents across generations said that they may not discuss certain topics - including longevity and health care costs - with an advisor if they feel they might try to sell them something (14%), because they did not know their advisor could help them with it (15%), or because they haven’t prioritized finding a solution (23%). Almost one fifth would wait for the professional to raise the topic and a similar share does not meet regularly with an advisor to discuss such matters.
Across all generations, the survey found that a holistic approach to financial advice is required and, crucially, collaboration cannot mean giving up control with 57% of respondents wanting advisors to offer suggestions that the client ultimately decides on. A quarter said that the relationship should feel like a partnership.
“In the past, playing to your strengths in terms of product selection may have been a winning strategy, but financial professionals need to be clear that they are open to collaboration and solutions outside of what they usually offer,” said Kelly LaVigne, vice president of consumer insights at Allianz Life. “It’s about meeting clients where they are, mentally and emotionally, and finding out what keeps them up at night.”
Other key words used in responses include understanding (of values/beliefs and personal concerns) and empathy (towards financial situation and struggles).
“Consumers’ desire for financial advice is as strong as it’s ever been, but financial professionals need to think more broadly about their role," LaVigne concluded. “To successfully serve the next generation of clients, financial professionals need to focus on collaboration, flexibility and truly understanding their clients’ values, priorities and concerns.”
The agent, Todd Bernstein, 67, has been charged with four counts of insurance fraud linked to allegedly switching clients from one set of annuities to another.
“While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the State,” Justice Peter Moulton wrote, while Trump will face limits in his ability to do business in New York.
Sieg, 58, was head of Merrill Wealth Management, left in 2023 and returned that September to Citigroup, where he worked before being hired by Merrill Lynch in 2009.
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