Data and Research

More People Seek Financial Advice Through Employers

Although nearly half (48%) of those surveyed who have worked with a financial adviser chose one outside of their workplace, that trend is shifting, TIAA finds.

By Lee Barney | September 29, 2016
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Seventy-one percent of Americans are interested in receiving financial advice, according to the 2016 TIAA Advice Matters Survey.

Forty-five percent of Gen Y have received advice, but 82% are interested. Thirty percent of those earning less than $50,000 a year have received advice, but 61% are interested in doing so.

Seventy-five percent of people said they would consider taking a job at a company that offers financial advice at no cost; that figure jumps to 87% of Gen Y.

Although nearly half (48%) of those who have worked with a financial adviser chose one outside of their workplace, that trend is shifting. Sixty-four percent of Baby Boomers who have received advice worked with a non-employer-affiliated adviser, but that drops to just 27% of Gen Y respondents.

“Gen Y really wants financial advice, and companies are doing their best to attract top young talent,” says Kathie Andrade, CEO of TIAA’s Retail Financial Services business. “So, it makes sense for employers to add advice to their benefits. Pairing a well-designed retirement plan with strong education and support can go a long way in helping companies attract well-qualified employees and set them on the path to success.”

When it comes to financial advice, Americans believe the earlier the better. Fifty-nine percent say that a first meeting with an adviser should take place before the age of 35—and that figure jumps to 80% for Gen Y respondents. Among those who have received advice, 77% wish they had met with an adviser sooner.

For those who have not worked with an adviser, 35% think they don’t have enough money to invest. Forty-nine percent think they need more than $50,000 to qualify to work with an adviser.

“You don’t need a minimum amount of money to receive professional financial advice,” says Andrade. “An array of effective online tools and resources gives everyone access to personal financial support. And finding a financial adviser early in your adult years, perhaps through your parents or employer, can help put you on a path for financial success.”

NEXT: What people want from an adviser