While most middle-income boomers in the U.S. have a hairdresser (73%), mechanic (66%), or handyman (52%), only 41% use a financial professional, according to a study by the Bankers Life Center for a Secure Retirement.
Of middle-income boomers not working with a professional, 39% don’t think they need financial advice because they prefer to make their own decisions. Other reasons vary, from feeling they don’t have enough savings (20%) to believing financial advice is too expensive (11%).
Many middle-income Americans could be without adequate plans for retirement due to the tendency of the financial services industry to cater to wealthy Americans. Of boomers who don’t have a financial professional, 85% have not been contacted by one asking for their business in the past year; and 63% have never been contacted.
Of those who have a financial professional, 25% sought out the relationship themselves. For only 6%, the relationship was initiated by the advisor.
Additional findings include:
- 62% express some doubts that they will have enough money to live comfortably throughout retirement;
- 48% who work with a financial professional are confident they’ll have enough money to live comfortably in retirement regardless of asset level, while 30% without a professional feel that way; and
- 26% of those who have a financial professional have investable assets of more than $500,000; compared to 5% of those without a professional.
The study surveyed 1,000 Americans aged 50 to 68, with an annual household income between $25,000 and $100,000.