The Schwab Retirement Advice Indicators also show that in the first quarter, the average savings rate increased 8% for those who opted to have advice. This amounted to a 10.3% savings rate average for this group, up from 9.6% at the end of 2004. The national average was 7%.
According to Schwab Corporate Services, women are more likely than men to sign up for advice (54% compared to 39%), but participants as a whole are signing up regardless of salary and balance account. There is also an equal numbers of participants between the ages of 26 and 55, which indicates is also not a factor in such a decision.
“More than half of those enrolled in advice are age 45 or younger, which is great news given the challenges of encouraging younger participants to save for retirement. This demonstrates the value of removing barriers, especially the barrier of cost, and of letting people receive advice in the way they find most comfortable, be that in person, over the phone or on the Web,” said Jim McCool, president, Schwab Corporate Services, in a press release.
The statement also made note of the fact that most participants asking for advice have salaries below $60,000; 43%have 401(k) account balances below $25,000.
For more details on the results of Schwab’s Retirement Advice Indicators, please go here .