Saver Receptivity to Financial Advice Reaches 10-Year High

Americans are more accepting of their responsibility to save for retirement and receptivity to financial advice is at a record high, according to new Hearts & Wallets research summarized in “Attitudes & Sentiment 2023: Driving Corporate Strategy in Response to Changing Consumer Needs.”

According to the study, the prevailing consensus nationwide is that employers are not “responsible for providing for my retirement.” Agreement with the statement “my employer is responsible for providing for my retirement” has risen only five percentage points since 2011, to 18% in 2023 from 13% in 2011 One-quarter of households reported feeling comfortable leaving funds in plans sponsored by former employers.

The demand for financial advice, meanwhile, has reached its high-water mark since 2013, particularly among millionaire households, Hearts & Wallets found. Among all respondents, 32% saw value in paying for financial advice, well above the 18% reported in 2013, when research on this surveying began.

How that advice will be delivered is still up for debate, according to the report. Consumer opinions remain divided on whether automated or human advisers provide superior advice.

“Despite progress in perceptions about advisers, the financial advice profession faces headwinds in articulating value proposition and justifying price,” the report noted. “Consumers are undecided how recommendations from robo-advisers and online tools compare to those of human portfolio managers and advisers.”

1 Firm, Please

Savers are also trying to look to only one source for financial needs.

The desire to both bank and invest with the same firm has seen significant growth, especially among households with less than $100,000 in investable assets. This attitude has experienced substantial year-over-year increases, with 35% of households nationally expressing a preference for integrated banking and investing, up from 23% in 2010, with research on this point dating back to that time.

The report suggested that companies should enhance both banking and investing capabilities and strengthen the connection between the two. Firms with genuine banking capabilities may have an advantage over those relying on third-party private labels, according to the researchers.

Manager Matters

Investors are also becoming savvier about who is managing their money.

Interest in the asset managers behind funds has grown, with 36% of households now agreeing it “is important to me which investment companies manage my mutual funds regardless of whether I or a financial professional has chosen the funds.” Those who agreed with the statement has grown steadily to 36% in 2023 from 26% in 2011.

The report recommended that investment firms strengthen partnerships between asset managers and distributors, as consumers express a desire to be informed about the asset manager behind their funds in both intermediary-sold and direct channels.

The findings in the “Attitudes & Sentiment 2023” report were derived from the Hearts & Wallets Investor Quantitative Database, analyzing consumer attitudes, sentiment, concerns and goals related to saving and investing. The survey, conducted from September 11 through October 6, involved 5,846 participants.