Half of middle-market baby boomers say they lack the confidence to manage their investing, and fewer than 50% have contacted a financial services professional for help, according to a new survey from the Insured Retirement Institute.
Cathy Weatherford
About one-half of those surveyed said they have determined their financial need for a “comfortable” retirement, giving financial service professionals a largely untapped market to exploit, according to the IRI, which conducted the survey of boomers with annual income between $30,000 and $74,000.
Of those needing financial advice, only 43% have contacted an investment advisor.
“The middle-income boomer market provides a great opportunity for advisors to grow their client base while helping a large segment of the population reach their retirement goals,” said Cathy Weatherford, president and CEO of the IRI.
“Our research shows that although boomers have the means to save for retirement, they do not believe they have the knowledge to select the best investment vehicle to meet their future needs,” Weatherford said in a statement. “Clearly, financial professionals have the knowledge and expertise to serve this market and can provide the needed guidance to boomers looking to fund and build their retirement nest egg.”
That market could grow, as most middle-income boomers can expect to receive an inheritance during their lifetimes, increasing their assets by about 30% of their current wealth, the survey found.
About 90% of middle-income boomers who use advisors believe they are doing a good job preparing financially for their own retirement, compared to 63% of those who do not use advisors.
Of the middle-income boomers who have consulted a planner, most do so to seek their expertise—whether it’s in building a plan or validating a plan that the Boomers have constructed themselves.
When asked to identify the most important trait they look for when selecting a retirement investment product, middle-income boomers identified principal protection (19% of respondents) and guaranteed income (17%), according to the survey.
Majority of middle-market baby boomers without financial advisors via IFAwebnews.com .
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