The Prestige

Financial advisers frequently view their role as helping others—but that role appears to be unappreciated, at least relative to other professions.

The most prestigious occupations—at least according to a new Harris Poll measuring perceptions of 23 different occupations—are firefighters, scientists, and teachers. Indeed, while “putting out fires’ and helping educate plan participants are clearly par for the course for most advisers, “stockbrokers’ were among the lowest ranked professions in the survey.

Six occupations were perceived to have “very great’ prestige by at least half of all adults responding to the telephone poll:

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  • firefighters (61%)
  • scientists (54%)
  • teachers (54%)
  • doctors (52%)
  • military officers (52%)
  • nurses (50%).

Also in the “very great” category were police officers (46%), priests/ministers/clergy (42%), and farmers (41%).

Teachers Featured

Harris Interactive has been asking about the prestige of different professions and occupations since 1977, and over the ensuing three decades, Harris notes that those who see teachers as having “very great’ prestige has risen 25 points from 29% to 54%. In fact, teachers are the only occupation, among the 11 tracked since 1977, to see a large rise in prestige, according to the report.

In contrast, the list includes10 occupations that are perceived by less than 20 percent of adults to have “very great’ prestige. The lowest ratings for “very great prestige’ go to:

  • real estate brokers (5%)
  • actors (9%)
  • bankers (10%)
  • accountants (11%)
  • entertainers (12%)
  • stockbrokers (12%)
  • union leaders (13%)
  • journalists (13%) (1)
  • business executives (14%)
  • athletes (16%).

Perhaps just as significantly, there were five occupations that are perceived by one-quarter or more of adults to have “hardly any prestige at all,’ including stockbrokers (25%), union leaders (30%), entertainers (31%), real estate brokers (34%), and actors (38%).

Gaining Ground?

As poorly as stockbrokers have fared (and they weren’t included as a category until 2003—not a very propitious time for those associated with the investment markets), at least their prestige seems to be gaining ground (it debuted at an 8, and climbed from 11 in 2006 to 12 this year). Consider that those who say lawyers have “very great’ prestige has fallen14 points, from 36% to 22%. Additionally,

  • scientists have fallen 12 points from 66% to 54%;
  • athletes have fallen 10 points from 26% to 16%;
  • doctors have fallen nine points from 61% to 52%;
  • bankers have fallen seven points from 17% to 10%;
  • entertainers have fallen six points from 18% to 12%.

Now, “stockbroker’ is an admittedly poor proxy for the role of a retirement plan adviser – but then, you probably didn’t become a financial adviser for the “prestige’ anyway.


(1)Note: it hasn’t escaped this journalist’s attention that “journalists’ fared poorly in the “prestige’ category.

Participants Want Help Understanding 401(k) Fees

More than eight in ten (83%) 401(k) participants acknowledged they actually do not know how much they pay in fees and expenses associated with their plan.

The majority of respondents to a recent survey by AARP expressed a desire to have a better understanding of the long-term impact of fees. The majority of participants (77%) said they would rather receive fee-related information on paper. Other disclosure methods preferred included: the Internet (30%), in-person group sessions (24%), and one-on-one counseling (23%). Respondents said they would want to receive fee information before they choose their 401(k) investments and on a regular basis thereafter.

Those who view fees as important were most likely to cite summary information (48%) as the resource they turn for information about fees, followed by prospectuses (35%), employer-provided financial advisers (23%), personal financial advisers (17%), and the Internet (19%).

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In addition, according to a report on the survey findings, more than half (54%) of participants surveyed said they do not feel knowledgeable about the impact fees can have on their retirement savings. In spite of these results, nearly eight in ten (79%) plan participants who make decisions about their 401(k) investments noted that fees are an important consideration in their decisions.

When asked who should be most responsible for ensuring that participants understand fees charged by plans, participants surveyed were most likely to say employers that sponsor plans (36%), followed by the financial services companies that administer the plans (32%), and 401(k) participants themselves (28%).

An encouraging finding from the survey was that many respondents appear to sense that fees can have a significant effect on their returns, the report said. When asked to choose between two funds with identical characteristics except for the expense ratio, the majority of respondents selected the fund with the lower expense ratio.

AARP commissioned the nationally representative survey of 1,584 401(k) plan participants ages 25 and older. The survey was fielded from June 8 through June 24 by Knowledge Networks of Menlo Park, California, to members of its online panel.

The full report of survey results is here.

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