Client Service June 27, 2017

Financial Help From Employers Desired by Majority of Employees

Feeling behind on retirement savings and facing debt, more than half of Americans polled said they wish their employer would offer financial help.
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Thirty-seven percent of Americans report feeling “not very” or “not at all” financially secure, while the majority (54%) describe themselves as “somewhat secure,” according to the MassMutual Middle America Financial Security Study.

Overall, 63% of respondents strongly or somewhat agree they are behind on preparing for retirement. More than half indicate they wish their employer offered more resources to help them prioritize their finances (52%) and wish their employer did more to educate them about saving for retirement (51%).

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Eight in 10 respondents earning less than $45,000 annually strongly or somewhat agreed they are behind on preparing for retirement compared with 54% of those earning $75,000 to $150,000 annually. In addition, 62% of those earning less than $45,000 annually want employer help prioritizing their finances, compared to 47% of those earning $75,000 to $150,000 annually.

Debt is the biggest single financial issue facing Middle America. Overall, 22% of respondents cited debt as their top financial problem with more Millennials and Generation Xers saying so, the study found. As middle Americans age, respondents reported, health care costs rise in importance, becoming the No. 1 concern for Baby Boomers.

“MassMutual’s study shows that employers may have opportunities to play a bigger role in helping their employees strengthen their finances, including deploying more educational resources on retirement savings and money management, benefits to help employees manage both short- and long-term financial challenges, and promoting the link between financial wellness and overall wellness,” says Teresa Hassara, leader of Workplace Solutions at MassMutual.

The internet-based research was conducted on behalf of MassMutual by Greenwald & Associates and polled 1,010 working Americans ages 25 to 65 who had annual household incomes of between $35,000 and $150,000 and participated in making household financial decisions. The study report can be found here.
In Practice June 27, 2017

Investors Want Advisers Who Work in Their Best Interest

Eighty-three percent of advisers believe a fiduciary standard will benefit the growth of their practice, regardless of the status of the DOL rule.
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Investors want to work with advisers who put their best interest to heart, Nationwide’s advisory solutions business found in a survey. Forty-eight percent said they would stop working with an adviser if they were not required by law to serve their best interest.

However, only 38% are aware of the Department of Labor’s (DOL’s) fiduciary rule. And there are misconceptions. Fifty-nine percent incorrectly thought that all financial advisers are already required by law to put their clients’ best interests first, including disclosing fees and conflicts of interest.

Nationwide’s advisory solutions business also learned that 84% of advisers are aware of the fiduciary rule. Eighty-three percent believe that a fiduciary standard will benefit the growth of their practice, regardless of the status of the DOL rule.

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“The industry has been changing for years, as more advisers migrate toward a fee-based approach when providing advice, and as consumers desire more simplicity, transparency and choice in their financial products,” says Mitchell Caplan, leader of Nationwide’s advisory solutions business. “It’s a powerful trend—and there’s no going back. The new DOL fiduciary rule has been a catalyst for change across the industry and creates opportunity.”

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