CHICAGO, Nov. 11, 2014 /PRNewswire/ -- While most
middle-income Baby Boomers have a hairdresser (73%), hired a
mechanic (66%), or retained a handyman (52%), only about four in 10
(41%) use the services of a financial professional, according to a
new study commissioned by the Bankers Life Center for a Secure
Retirement ® (CSR).
The study - The Middle-Income Boomer Retirement Gap: Savings,
Education and Advice – surveyed 1,000 Americans aged 50 to 68
with an annual household income between $25,000 and $100,000.
Of middle-income Boomers not working with a financial
professional, four in 10 (39%) do not think they need financial
advice because they prefer to make their own financial
decisions. Other reasons vary—from feeling they don't have
enough savings (20%) to believing financial advice is too expensive
(11%).
Middle-income Boomers are an underserved market
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
- 63% have never been contacted
Of Boomers who have a financial professional, one quarter (25%)
sought out the relationship themselves, while for less than one in
10 (6%) the relationship was initiated by the advisor.
Boomers doubt financial security in
retirement
Two-thirds (62%) of middle-income Boomers express
some doubts that they will have enough money to live comfortably
throughout retirement.
About half (48%) who work with a financial professional are
confident they'll have enough money to live comfortably in
retirement regardless of asset level, while less than a third (30%)
without a professional feel that way.
Professional financial advice yields higher
assets
Those who do turn to a financial professional
generally have more saved for retirement. More than
one-quarter (26%) of middle-income Boomers who have a financial
professional have investable assets of more than $500,000, compared to less than one in 10 (5%) of
those without a professional.
However, not all of those working with a financial professional
start with a high level of assets. In fact, nearly half (43%)
of middle-income Boomers who have worked with a professional less
than two years reported less than $100,000 in investible assets. That number
drops to less than one quarter (24%) for those who have worked with
a professional for 10 or more years.
"Options are available for nearly any income and asset level,
age and risk tolerance," said Scott
Goldberg, president of Bankers Life. "Boomers need to
take the initiative, reach out to one or more professionals and
develop a financial plan for their future, because as we can see,
the results tend to pay off."
Methodology
The Middle-Income Boomer
Retirement Gap: Savings, Education and Advice is part of a
series of studies commissioned by the Bankers Life Center for a
Secure Retirement. It was conducted in July
2014 by the independent research firm The Blackstone Group.
The full report can be viewed at
CenterForASecureRetirement.com.
The internet-based survey consisted of a nationwide sample of
1,000 Americans. All respondents were aged 50 to 68 and have an
annual household income between $25,000 and
$100,000.
Quotas were established based on the U.S. Census Current
Population Survey data for age, gender and income to obtain a
nationally representative sample. The margin of error is +/- 3.1
percentage points at the 95% confidence level.
About the Center for a Secure Retirement
The Bankers
Life Center for a Secure Retirement is the Company's research and
consumer education program. Its studies and consumer awareness
campaigns provide insight and practical advice to help everyday
Americans achieve financial security in retirement.
Bankers Life products focus on the insurance needs of the
middle-income retirement market through nationwide subsidiaries of
CNO Financial Group, Inc. (NYSE: CNO). These companies offer a
broad portfolio of life and health insurance designed especially
for those near or in retirement.
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SOURCE The Bankers Life Center for a Secure Retirement