90% of Americans turn to family & friends for financial guidance, while only 62% seek professional advisors
“The Future of Advice,” a new TIAA Institute study in collaboration with MIT AgeLab reveals the value people place on financial advice, who they turn to for financial advice, as well as striking differences in how women and members of younger generations experience financial advice.
Despite retirement planning being the top priority for financial advice, there’s a significant satisfaction gap in the financial advice people receive, indicating a clear opportunity for industry improvement. In fact, only 40% are satisfied with the financial advice they receive. However, of those who worked with a financial advisor, 62% reported higher levels of satisfaction, underscoring the value and need for greater access to financial professionals. In implementing financial advice, the research shows that financial advisors use technology like AI to enhance, and not replace, the trusted advisor relationship.
“At this pivotal moment in financial services, we’re witnessing more than just a change in how advice is delivered—we’re seeing a fundamental shift in what it means to secure financial futures,” said David Nason, CEO of TIAA Wealth Management and Advice Solutions. “As life expectancies extend and complexity increases, our industry’s true measure of success will be our ability to help millions of Americans transform financial guidance into lifetime financial security.”
The study was conducted with more than 1,000 participants in the U.S., providing a clear look into consumer preferences. Interviews with professionals were also conducted for a comprehensive view of the landscape of advice.
“The ‘Future of Advice’ study is a unique opportunity to reshape how Americans across the generations receive and act on financial guidance,” said Joseph Coughlin, founder and Director of the MIT AgeLab. “Our research shows that successful advisory relationships must combine both high touch and high tech to provide the expertise, efficiency, and empathy clients value.”
Key Elements of the Study
Gender dynamics matter. Women and men approach financial advice differently—from when they seek it during their careers to how they value advisor characteristics and communication preferences, with women prioritizing advisor expertise and ethics.
Traditional meets digital. While traditional communication methods dominate advice delivery, digital channels are gaining traction among specific demographics, suggesting the need for a hybrid approach to client engagement.
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