For insurance agents who are curious about how much of a positive impact they are having on their clients when giving them financial advice, a new study makes plain that their recommendations are paying off.
According to analysis from the Employee Benefit Research Institute, after reviewing some of the savings and financial maintenance habits of a group of U.S. adults, researchers found a link between those who sought input from a financial advisor and how at risk they were for having a low supply of money headed into retirement. For example, among those individuals who actively strived to live up to the recommendations made by a financial expert, they were able to reduce the likelihood of running out of money for their retirement by between 9 percent and 13 percent. That probability was largely dependent on how large the respondents' families were.
Meanwhile, for people who did not seek the advice of a financial advisor, they used guesswork in order to determine how much it would cost them to retire. Independent of how much money they were making, those who did so were more likely to be off-base in choosing a target amount that could conceivably be sufficient in order to be able to retire comfortably.
"As American workers bear a growing responsibility for accumulating retirement income and managing the drawdown of those savings during retirement, it is more important than ever that households be able to set adequate targets for their retirement savings," said Jack VanDerhei, research director at EBRI and co-author of the report.
He added that far too few people today actively recruit the assistance of a financial advisor or insurance professional.
This appears to be a widespread issue that some people are reticent about. In a separate poll conducted by Forbes Consulting Group, even though only one-quarter of moms surveyed said they were content with their money situation, less than 33 percent of them used the services of a financial expert.