Here's a statistic that should make financial advisers stand a little taller: Clients who work with a financial professional are more than twice as likely to feel financially secure and ready for retirement compared to consumers who don't.
More than half — 54% — of those who work with an adviser feel "very financially secure" compared to just one in five of those without an adviser, according to the latest findings from Northwestern Mutual's
2018 Planning and Progress Study, an annual research project that explores Americans' attitudes and behaviors toward money.
In addition, more than two-thirds — 67% — of Americans who use a financial adviser believe they have a clear idea of how much to spend now and save for later, compared to just 44% of people without an adviser.
"Financial decision-making can be overwhelming, especially when juggling a number of competing priorities," said Sandy Botcher, vice president of distribution at Northwestern Mutual. "A financial adviser has the expertise and objectivity to see the whole picture and develop a strategy that's flexible enough to enjoy life today while securing tomorrow."
That may be one reason that 60% of people who don't work with an adviser focus on
debt reduction as their No. 1 priority compared to only 37% of those who do work with an adviser. Advisory clients tend to have a more balanced approach to
financial planning and generally are more concerned about reviewing their retirement plan, investment mix, tax strategies and insurance coverage than consumers who go it alone.
Three-quarters of Americans with advisers consider themselves "disciplined" or "highly disciplined" financial planners, compared to just 37% of those without an adviser. And more than 7 in 10 people with an adviser said their investment plan was created to endure market cycles compared to less than third of those without an adviser.
While the findings underscore the overall value of working with an adviser, Americans cited several attributes that distinguish a remarkable adviser experience from merely an acceptable one.
"Someone I can fully
trust to have my best interest at heart/not just out to sell product" emerged as the leading priority, cited by 57% of respondents. Other factors included: "Not feeling judged on size of assets or financial decisions," which was cited by 36% of survey respondents, and a "deep expertise across a wide range of financial solutions and strategies," identified by 33% of respondents.
Finally, in the battle of humans versus robots, humans won. Six in 10 Americans said a human relationship, combined with technology, is ideal while only 11% opted for a fully automated solution.
The 2018 Planning and Progress study was conducted online by Harris Poll in March and included 2,003 adults aged 18 or older.
(More: Do human advisers make clients happier than robos?)
