NEW YORK--(BUSINESS WIRE)--When it comes to meeting with a professional financial advisor, the
earlier the better, according to the 2016 TIAA Advice Matters Survey.
Fifty-nine percent of American adults say that a first meeting with an
advisor should take place before age 35 - and that figure jumps to 80
percent among Gen Y respondents. With 77 percent of all respondents who
have received financial advice saying they wish they had done so sooner,
it's clear that Americans see the advantage of getting professional
counsel early in their careers.
However, a perceived lack of savings often prevents individuals from
getting the financial advice they may need. Thirty-five percent of
Americans who haven't worked with a professional financial advisor say
the primary reason they have not done so is because they don't have
enough money to invest. In fact, almost half (49 percent) of Americans
think they need more than $50,000 in savings to justify meeting with a
professional financial advisor - similar to the 45 percent of Americans
who felt the same way last year.
"You don't need a minimum amount of money to receive professional
financial advice," said Kathie Andrade, CEO of TIAA's Retail Financial
Services business. "An array of effective online tools and resources
give everyone access to personal financial support. And finding a
financial advisor early in your adult years - perhaps through your
parents or employer - can help put you on a path for financial success."
Gap Between Interest and Action
Despite the fact that only 48 percent of Americans have received
professional financial advice, many more (71 percent) are interested in
getting advice. The gap between interest and action is even larger among
certain groups: 45 percent of Gen Y respondents have received advice,
but 82 percent are interested; 30 percent of respondents with an annual
income of less than $50,000 have received advice, though 61 percent are
Customized counsel may encourage more individuals to seek advice,
according to the survey. Eighty-five percent of respondents say they
would find advice designed specifically for their age group to be
helpful, while 73 percent of women say the same about advice tailored
for and delivered by women. Personal support could help narrow the
advice gender gap - only 40 percent of women have received professional
financial advice, compared to 56 percent of men.
Milestone events also may prompt Americans to seek professional
financial advice, such as retirement (41 percent), receiving an
inheritance (32 percent), preparing to purchase or sell a home (30
percent) and planning for a child or grandchild's college education (20
"A big event often encourages people to get financial advice, but you
don't need to have a milestone in your life to reach out for
professional financial support," Andrade said. "You can get valuable
perspective on day-to-day financial matters, like creating a budget,
determining your insurance needs or making charitable donations, whether
face-to-face with an advisor or through online tools."
What else might motivate more individuals to start working with an
29 percent say they would be more likely to consider working with a
professional financial advisor if they had a clear understanding of
how they would be charged for advice.
24 percent point toward a recommendation from friends or family.
22 percent would look for assurance that the advisor is qualified to
20 percent would want assurances that the advisor would not try to
sell them any particular product, service or investment.
The opportunity to streamline finances also may prompt more Americans to
get financial advice: 84 percent would like to work with an advisor
whose company can handle both their investments and banking needs.
Investment advice and saving for retirement outside of a workplace
retirement plan are the top two topics that Americans would like to
discuss with a financial advisor, but topics vary by income levels. The
survey found that individuals with an annual income of less than $50,000
are less likely than those with an annual income of more than $100,000
to seek investment advice (30 percent compared to 49 percent), but they
are more likely to be interested in creating a budget (34 percent versus
21 percent). However, Americans of all income levels are equally likely
to be interested in advice on creating monthly income they can't outlive
(29 percent among all respondents).
Advice Can Help Employers Attract Talent
Employers can play a key role in helping individuals access the
financial advice they need - while helping companies attract and retain
talent. Three in four Americans say they would be more try this web-site likely to
consider a job if it offered no-cost financial advice as part of a
benefits package. That figure increases to 87 percent among Gen Y
And when asked to select among various free perks an employer could
offer, advice was the most popular choice. Thirty-three percent say they
would like access to a no-cost financial advisor, compared to 17 percent
who prefer on-site medical care and 12 percent who want free lunch
prepared by an on-site chef.
Though nearly half (48 percent) of those who have worked with a
financial advisor chose one not affiliated with their employers, the
tide seems to be shifting. Sixty-four percent of baby boomers who have
received professional financial advice say they worked with a
non-employer-affiliated advisor, but that figure drops to 27 percent
among Gen Y respondents.
"Gen Y really wants financial advice, and companies are doing their best
to attract top young talent. So it makes sense for employers to add
advice to their benefits," Andrade said. "Pairing a well-designed
retirement plan with strong education browse around here and support can go a long way in
helping companies attract well-qualified employees and set them on the
path to success."
For more information about the TIAA 2016 Advice Matters Survey, read the
The survey was conducted by KRC Research online among 1,000 adults, age
18 years and older living in the United States, from Aug. 10 to Aug. 15,
2016. The sample was proportionally obtained by demographics such as
age, gender, region and income to ensure reliable and accurate
representation of the national population age 18 and older.
is a unique financial partner. With an award-winning1 track
record for consistent investment performance, TIAA is the leading
provider of financial services in the academic, research, medical,
cultural and government fields. TIAA has $889 billion in assets under
management2 (as of 6/30/2016) and offers a wide range of
financial solutions, including investing, banking, advice and guidance,
and retirement services.
1The Thomson Reuters Lipper Large Fund Award is given to the
group with the lowest average decile ranking of three years' Consistent
Return for eligible funds over the three-year period ended 11/30/12,
11/30/13, 11/30/14 and 11/30/15, respectively. TIAA was ranked among 36
fund companies in 2012, 48 fund companies in 2013 and 2014, and 37 fund
companies in 2015 with at least five equity, five bond or three
mixed-asset portfolios. Classification averages are calculated with all
eligible share classes for each eligible classification. The calculation
periods extend over 36, 60 and 120 months. The highest Lipper Leader for
Consistent Return (Effective Return) value within each eligible
classification determines the fund classification winner over three,
five or 10 years. A detailed awards methodology can be found at
excellence.thomsonreuters.com/award/lipper. For current performance and
rankings, please visit the Research and Performance section on TIAA.org.
Past performance does not guarantee future results.
2 Based on assets under management across Nuveen Investments
affiliates and TIAA investment management teams.
You should consider the investment objectives, risks, charges and
expenses carefully before investing. Please call 877-518-9161 for
current product and fund prospectuses that contain this and other
information. Please read the prospectuses carefully before investing.
The TIAA group of companies does not provide legal or tax advice. Please
consult your legal or tax advisor.
Investment, insurance and annuity products are not FDIC insured, are not
bank guaranteed, are not deposits, are not insured by any federal
government agency, are not a condition to any banking service or
activity, and may lose value.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal
Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and
SIPC, distribute securities products.
Deposit and lending services and products are provided by TIAA Direct®,
a division of TIAA-CREF Trust Company, FSB. Member FDIC. Equal Housing
© 2016 Teachers Insurance and Annuity Association of America-College
Retirement Equities Fund, 730 Third Avenue, New York, NY 10017