The Principal Financial Well-Being IndexSM: Advisors
August 28, 2014 by The Principal Financial Well-BeingSM
Even though advisors say their financial health is on the up-and-up, they may not be reaching Gen Y clients, according to new research from The Principal Knowledge Center.
Key findings include:
Gen (wh)Y
- Only 18 percent of financial advisors surveyed are targeting Gen Y clients.
- Only 30 percent of American workers overall work with a financial advisor.
- Barriers to working with a financial professional include fees/costs (29 percent) and fear (16 percent).
Financial Lift
- 41 percent of advisors say individuals begin working with a financial professional for their expert advice and guidance.
- Advisors recommend clients save 17 percent of their pay, on average, for their retirement.
- Clients’ top financial blunders include living beyond their means (22 percent) and not saving enough (15 percent).
Advisor check-up
- 83 percent of advisors, (up from 78 percent last year) rated the financial health of their business as either “healthy” or “very healthy”.
- Advisors’ single greatest pain point is dealing with regulatory and compliance issues (46 percent).
- Three in four advisors plan to grow their business organically while one in four have plans for growth by partnering with others.
The Principal Financial Well-Being Index: Advisors surveys financial advisors nationwide including independent broker/dealers, wire house and regional brokerage firms, insurance agencies, independent wealth management firms, banks and independent asset management firms. It is part of a series of quarterly studies examining the financial well-being of American workers and business owners, as well as advisor opinions and practice management. The studies are released by the Principal Financial Group® and conducted online by Harris Interactive®.
For more information, contact Susan Houser at 515.248.2268 (susan.houser@principal.com).
