Advice Pays Confidence Dividends for Employees

Findings from the Northwestern Mutual Planning and Progress study show Americans who receive regular guidance from financial advisers feel markedly more prepared for retirement and other financial challenges, leading to far greater confidence.

According to the data shared by the firm, seven in 10 Americans with advisers say their retirement plan is designed to withstand market cycles, compared to 30% of those who do not use an adviser. At the same time, 49% of people without an adviser have taken no steps to address the possibility of outliving their savings—three times as many as those with an adviser (15%).

“As people live longer, the economy continues to fluctuate, and health care and other costs increase, navigating retirement planning becomes more complex and overwhelming,” warns Rebekah Barsch, vice president planning, Northwestern Mutual. “Working with an adviser is like having an experienced guide map out an itinerary for your retirement journey that’s tailored to your unique lifestyle goals and circumstances.”

In addition to a heightened level of retirement readiness, Northwestern Mutual suggests Americans who work with advisers “tend to feel more financially confident overall.”

“Notably, individuals with financial advisers are almost twice as likely as those without to say they feel very financially secure, at 68% vs. 36%, respectively,” the research shows. “Additionally, more than three quarters (77%) view themselves as ‘highly disciplined’ or ‘disciplined’ planners compared to 41% of those without an adviser.”

Other findings show more than half (52%) of U.S. adults with advisers think the economy will be better this year than in 2016 compared to just 39% of those without advisers. Further, six in 10 people with advisers “believe that the American Dream is still attainable to most,” while only four in 10 of those without an adviser feel the same.

The full survey findings are available for download here.