Advisers Shore Up Confidence in Retirement

Americans who work with a financial adviser are much likelier to be saving for retirement (93% versus 54%), according to Franklin Templeton’s 2015 Retirement Income Strategies and Expectations survey. In addition, nearly one-quarter of pre-retirees who have never worked with an adviser never expect to retire.

Those who work with an adviser are confident that their retirement plan (77%) and personal investments (89%) will provide expected income in retirement. Among those who have not worked with an adviser, only 58% believe their retirement plan and personal savings will provide adequate income. Also, for those who aren’t working with an adviser, 32% say their number one concern in retirement is running out of money. For those working with an adviser, the top concern is health and medical issues.

Furthermore, those who work with an adviser have a better tolerance for short-term volatility; 67% of these people say they would not worry if their retirement investments declined by 5%, compared with 53% of those who have not worked with an adviser.

“People should absolutely take an active approach when it comes to retirement planning, and financial advisers can help,” says Michael Doshier, vice president of retirement marketing for Franklin Templeton Investments. “Our survey results clearly demonstrate the critical role financial advisers play in empowering their clients to become active participants in both financial and emotional retirement preparation. Advisers can provide the necessary tools and support their clients need to be smart, engaged investors, which ultimately leads to their greater sense of security in the time leading up to and during retirement.”

ORC International conducted the survey among 2,002 adults in January for Franklin Templeton.