Those Who Work With Financial Adviser Better At Retirement Planning

According to the 2011 Franklin Templeton Retirement Income Strategies and Expectations (RISE) survey, among the Americans who have never worked with a financial adviser, only 36% said they know how much they will withdraw annually from their retirement savings. In addition, more than a third (35%) of those who have never worked with an adviser said they do not think about how they will approach different sources of retirement income.

The survey showed that 79% of Americans currently do not work with a financial adviser, but nearly half (47%) of respondents said they would consider going to a financial adviser or switching their current adviser if the adviser prepared a written retirement income plan.

“A large number of Americans are not currently enlisting the help of a financial adviser, in many cases because they think they don’t have enough money to warrant working with one,” said David McSpadden, senior vice president of Global Advisory Services for Franklin Templeton Investments. “The fact is, most Americans do want to retire at some point, but they may be missing a key resource for helping to determine how they will get there. Sitting down and discussing their concerns, plans and strategies for retirement with a financial professional is a key step towards defining and putting together a plan to reach their goals.”

Additional findings from the survey included:

•  Of the respondents not using an adviser, 41% said it is because they don’t think they have enough money to need one, and 30% said it is because they prefer to do it themselves.

•  Thirty-eight percent who have never worked with a financial adviser say Social Security will provide the most income during retirement—twice as many as those who do work with a financial adviser (19%).

•  While 35% of respondents who have never worked with an adviser indicated that running out of money is their top concern, among those who have worked with a financial adviser (currently or in the past), that same concern fell to 24%. 

•  Thirteen percent who work with a financial adviser say IRAs will provide the most income during retirement (versus only 4% of those who have never worked with one).

The Franklin Templeton Retirement Income Strategies and Expectations (RISE) survey was conducted online among a sample of 2,046 adults comprising 1,020 men and 1,026 women 18 years of age or older. The survey was administered between September 15-18 and 19-21, 2011, by ORC International’s Online CARAVAN.