New Citizens Bank Survey Finds Emotional Benefits of Financial Planning Makes Plans Stickier for Consumers, & Starting Early ...
December 05 2018 - 9:00AM
Business Wire
Despite acknowledging the importance of
financial plans, nearly half of adults don’t have one
Financial plans are a critical but underutilized component of
financial management, according to a new survey from Citizens Bank
Wealth Management and Mintel. The survey, which evaluated
consumers’ financial planning attitudes and behaviors, found that
only 55 percent of adults have a firm financial plan, but of those
without a plan, three-in-four people recognize the need for
one.
Fear is often a barrier to planning, but those with a financial
plan are more confident and positive about their current and future
finances than those without one highlighting one of the many
emotional benefits of having an organized approach. Planners
reported a high level of confidence (87%) and a positive outlook on
their financial security (75%). Leading drivers of this confidence
were starting a plan early in adulthood, the long-term focus and
discipline of having a plan, and meeting often with an advisor to
stay updated on financial issues. Nearly three quarters of
respondents cited the personal satisfaction of being organized for
their future as their primary reason for sticking to their
financial plan, with a centralized location for managing finances
ranking second (63%), underscoring the impact of organization on
financial peace of mind.
“With the tremendous impact your financial wellness has on your
overall wellness, we view financial plans as an essential tool in
alleviating some of the anxieties around financial security,” said
John Bahnken, president of Citizens Bank Wealth Management. “For
many, it’s a challenge to shift the balance from the fear-based
attitudes about finances to the wellness benefits rooted in
positive emotion and personal satisfaction. People often
underestimate the benefit of something as simple as being
organized, and this survey has demonstrated that it really can
transform your thinking and your commitment to following through on
your plan.”
Additionally, gender appears to play a role in both attitudes
about financial planning and expectations around advisory
relationships. One-in-three women believe financial planning should
begin in early adulthood, compared to one-in-four men; however,
women were less likely than men to have a firm financial plan (53%
compared to 59%) and felt less financially secure (59% compared to
70% of men). When working with an advisor, women tend to place
greater emphasis on relationship factors than men. They were more
likely to consider a tailored plan aligned to their preferences
(71%) and a consistent engagement with plan revisions (58%) as the
most important factors in an advisory relationship.
“This research has pointed to several ways we can help women
achieve greater financial confidence and security,” said Maggie
Wall, head of Premier Advisory at Citizens Bank Wealth Management.
“Women want to be part of the process – to collaborate, to see
options that reflect they’ve been heard, and to be given the tools
to understand and make informed decisions about those options.”
Survey MethodologyOn behalf
of Citizens Financial Group, Mintel conducted a nationally
representative online survey of 1,648 consumers in October-November
2018. All respondents were financial decision-makers for their
household and between the ages of 25 and 74.
About Citizens Bank Wealth
ManagementCitizens Bank Wealth Management provides
integrated banking and investing services to clients to help them
grow and protect their wealth, and plan for retirement and other
long-term financial objectives. Citizens Bank Wealth Management
includes a brokerage arm, Citizens Investment Services, as well as
Premier Advisory and Citizens Private Wealth Management, which
serve the affluent and high net worth client segments,
respectively. Citizens Private Wealth Management delivers
comprehensive private banking, financial planning, investment
management and trust and estate planning services. Collectively,
Citizens Bank Wealth Management’s approximately 900 colleagues are
focused on delivering comprehensive wealth management services
across the firm’s major markets.
About Citizens Financial Group,
Inc.Citizens Financial Group, Inc. is one of the
nation’s oldest and largest financial institutions, with $158.6
billion in assets as of September 30, 2018. Headquartered in
Providence, Rhode Island, Citizens offers a broad range of retail
and commercial banking products and services to individuals, small
businesses, middle-market companies, large corporations and
institutions. Citizens helps its customers reach their potential by
listening to them and by understanding their needs in order to
offer tailored advice, ideas and solutions. In Consumer Banking,
Citizens provides an integrated experience that includes mobile and
online banking, a 24/7 customer contact center and the convenience
of approximately 2,900 ATMs and approximately 1,150 branches in 11
states in the New England, Mid-Atlantic and Midwest regions.
Consumer Banking products and services include a full range of
banking, lending, savings, wealth management and small business
offerings. In Commercial Banking, Citizens offers corporate,
institutional and not-for-profit clients a full range of wholesale
banking products and services, including lending and deposits,
capital markets, treasury services, foreign exchange and interest
rate products and asset finance. More information is available at
www.citizensbank.com or visit us on Twitter, LinkedIn or
Facebook.
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version on businesswire.com: https://www.businesswire.com/news/home/20181205005123/en/
Megan Griffin781-655-2418megan.m.griffin@citizensbank.com
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