Advisers Boost Retirement Preparedness

People who work with an adviser are twice as likely to be on track for retirement, John Hancock Retirement Plan Services found in its 2015 Financial Stress Survey. Among those who work with an adviser, 70% are on track or are even ahead in saving for retirement, compared to 33% of those who are not working with an adviser.

Among those who are working with an adviser, more than one third have determined how much to save for retirement and half had contributed to an individual retirement account (IRA). Among those who are not working with an adviser, only 14% had calculated how much to save for retirement and only 16% contributed to an IRA.

The survey also found that 58% of people with an adviser have money saved for an emergency, compared to 26% of those not working with a professional. Within a 401(k) plan, 28% of those surveyed with an adviser are contributing the maximum amount allowed, versus 13% of those not working with an adviser.

“People need advice, not just investment advice but also basic retirement planning guidance,” says Patrick Murphy, president of John Hancock Retirement Plan Services. “And people need help with more holistic financial issues such as budgeting and meeting short-term needs versus the need to save for longer-term goals. It’s very clear that engaging a financial adviser helps people take positive financial steps, from saving for emergencies to saving for retirement.”