Retirement savers rely heavily on commission-based financial professionals, according to the results of a new survey.
Only around one in 10 retirement savers surveyed by the American Council of Life Insurers are very confident they could handle financial planning without the help of a professional.
The finding is based on a survey of 506 individuals who are financial decision-makers between the ages of 55 and 70, have an annual household income of $35,000 to $149,999, and have $25,000 to $235,000 in savings and investments. The survey was fielded from March 10 through April 18.
The respondents work with commission-based financial professionals or are planning to work with one in the near future, rather than with one charging “an ongoing regular fee arrangement for portfolio management,” according to ACLI.
Nine out of 10 respondents said they depend on that professional when it comes to retirement planning “to at least some extent,” ACLI says.
And almost all of the respondents find their discussions with a financial professional at least somewhat valuable, and only 2% believe they’re not too valuable, according to the survey.
In addition, close to eight in 10 respondents believe their professional is worth the money they’re paying them, ACLI says it found.
ACLI, along with the National Association of Insurance and Financial Advisors and the Securities Industry and Financial Markets Association, played a key role in getting the Department of Labor’s fiduciary rule vacated in the courts in 2018, as reported. That rule purported to require retirement account advisors to put clients’ interests first and avoid or clearly disclose any potential conflicts of interest, including as it relates to commissions and other revenue.
Do you have a news tip you’d like to share with FA-IQ? Email us at email@example.com.