Financial Professional Usage Increasing, Digital Advice Leveling Off

In the past year, 79% of households have taken a saving or investing action, with the most common being reducing spending (50%), increasing retirement savings (29%), saving more generally in accounts (25%), and creating an emergency fund (24%), according to a new report from Hearts & Wallets.

Additionally, 27% have purchased life insurance, according to “Advice, Technology & Actions: Engagement with Human and Digital Influences and the Connection to Outcomes,” a report from Hearts & Wallets, based on 6000 households. Looking ahead, two-thirds of households plan to continue saving more, particularly in taxable and retirement accounts.

Advice Gap on Saving

However, Americans focused on saving may not get help with current advice offerings. The Hearts & Wallets report reveals that advice on how to allocate saving is rare in current advice experiences. Most (67%) advice experiences do not address allocation of new saving across account types.

“Firms can differentiate competitively with saving and other advice that aligns with consumer demand,” Laura Varas, CEO and founder of Hearts & Wallets, said. “How to allocate saving across account types is a complex decision that balances liquidity spending needs and current taxes with serious long-term tax implications.”

In-Person Usage Up, Digital Advice Plateaus

Two primary sources dominate the report results as Americans’ “go-to” for financial support. The top source is the individual or their spouse/partner, accounting for 47% of households. The second most common source is financial professionals, serving 25% of households. The use of financial professionals as a primary resource has risen by 4%, up from 21% in 2012.

Paid investment professionals are particularly prominent, being twice as likely to be the go-to source compared to other financial professionals. Specifically, those paid a flat fee or a percentage of investment assets are more commonly relied upon than brokers or registered investment advisers. Employer-sponsored programs are down 3% and the biggest year-over-year pullbacks in use occurred in statements, down 4%.

The use of digital advice tools is leveling off. About 60% of households have been relying on online sources for investment information and advice for the past three years. In 2024, for the first time, more people are using mobile devices than computers for online activities. Around 19% of households now use planning tools only on mobile. However, research shows that mobile devices often struggle to explain complex topics or calculations clearly.