What Americans actually want in an advisory relationship

While Americans value financial advisors who can clearly explain complex concepts, that's not all they're looking for, according to a national study released by TIAA and the MIT AgeLab.

The strudy drew responses from more than 1,000 survey respondents across the US, as well as in-depth interviews from selected professionals.

Across demographic groups, the top three traits respondents said they want in an advisor are the ability to explain things clearly (rated “very important” by 3.64 on a 4-point scale), domain expertise (3.64), and ethical standards (3.56). Reputation and years of experience followed closely behind.

The report released Friday also found that 62 percent of respondents want their advisor to act primarily as an information source, while many also valued roles such as educator (42 percent) and information interpreter (42 percent). Preferences diverged across demographic lines, with African American clients more likely to view advisors as supporters (47 percent) and mentors (45 percent), and Hispanic clients showing similar expectations for guidance beyond technical advice.

“These findings illuminate a pivotal transformation in how Americans seek and value financial guidance,” said Pam Feldstein, executive vice president at TIAA Advice Solutions. “The future of financial advice must be more personalized, demographically focused and accessible across multiple channels.”

The study found that Americans rely on a wide range of sources for financial advice. Nearly all respondents – 94 percent – turn to family and friends, while 34 percent consult work colleagues. Among professional channels, financial advisors were the most frequently cited source (62 percent), followed by bank employees (32 percent) and lawyers (24 percent). Human resources departments, medical professionals and social workers were also mentioned, though at lower rates.

Given the diverse mix of sources, satisfaction with financial advice overall remains low. Just 40 percent of respondents said they were satisfied with the advice they received – a figure that reflects the full range of informal and formal sources, not just experiences with professionals. Among those who reported working directly with financial advisors, satisfaction was much higher: 62 percent said they found their advisor very helpful.

“Today’s financial advice landscape reveals a critical paradox: While 94 percent of Americans turn to family and friends for financial guidance, only 40 percent are satisfied with the advice they receive,” said Paresh Mutha, senior managing director at TIAA Advice Solutions. “This trust-versus-expertise gap represents a challenge but also an opportunity for our industry.”

While professional credentials matter, the research suggests relational factors also influence trust. Roughly one-third of all respondents said they value an advisor’s relatability. Men were more likely than women to rate this quality highly (36 percent vs. 30 percent). African American clients were more likely to prioritize the advisor’s company reputation over individual credentials.

The most common financial topics prompting Americans to seek advice are retirement planning and saving, followed by tax planning and long-term investments. Gender differences emerged in advice-seeking behavior, with women more likely to look for retirement guidance at the start of their careers and again near retirement, while men more consistently sought tax and investment advice across life stages. Both groups reported similar interest in debt management.