AIG Life & Retirement and MIT AgeLab Study
Reveals Clients Desire Wider-Ranging Conversations with
Advisors
Despite Technological Advances, Human
Interactions and Deeper Discussions Drive Greater Satisfaction
According to a new study from AIG Life & Retirement and the
MIT AgeLab, financial clients are expressing a willingness and
desire to step beyond traditional conversational boundaries with
their financial professionals. This is particularly apparent with
younger clients between the ages of 30 and 45 who indicate the most
interest in discussing a range of topics beyond money
management.
The Future of Client-Advisor Relationships study, which surveyed
more than 2,000 financial clients between the ages of 30 and 75,
finds that clients’ trust in and satisfaction with their financial
professional increases when both parties are willing to broaden
their conversations and engage in a more transparent, holistic
approach to financial and future planning.
This approach requires going beyond traditional concerns
regarding financial advice and engaging on topics that are top of
mind for clients. These include health and future care, identity
theft and fraud prevention, housing, future goals and aspirations,
and work and career transitions. For financial professionals,
having conversations about these topics and drawing on available
resources to provide information and insight can help deepen their
relationships with clients and identify issues that can affect a
client’s future.
“While portfolio performance, good service and financial
expertise remain important drivers of satisfaction, clients are
increasingly looking to have more meaningful conversations with
their financial advisors,” said Kevin Hogan, Chief Executive
Officer, AIG Life & Retirement. “We recognize that
financial advisors cannot be experts on all topics; however, they
have an opportunity to help clients identify areas of concern and
act as a ‘resource connector,’ using a broader network to help
clients find the right expertise and services to address their
needs.”
Broadening Client Conversations
The study reveals how expanding discussions with all age groups
has the potential to deliver more value to clients. Respondents who
report the highest levels of satisfaction are more likely to say
they have discussed a variety of topics with their financial
professional:
- 85% of highly satisfied clients have discussed future goals and
aspirations
- 77% have discussed job transitions, new careers or
retirement
- 72% have discussed potential expenses for their own care
- 62% have discussed their family members’ finances
Identity Theft and Fraud
Prevention
An emerging area of concern for financial clients are topics
related to identity theft and fraud. This is especially relevant
for older clients (ages 61-75) who say this is a top concern yet
who are least likely to have had a related conversation with their
advisor (only 30%).
Nearly all clients who have had this conversation are open to
continuing the discussion (97%). Of those who have not discussed
the topic, 80% are open to doing so. There is an opportunity here
for advisors to become familiar with resources they can share with
clients to aid understanding on the topic.
Health and Future Care
When asked to identify which topics are top of mind, respondents
largely note physical health as a top concern; however, more than
half (57%) say they have not discussed it with their advisor.
Younger respondents (ages 30-45) are more likely to have
discussed physical health with their financial professional, with
more than three out of four (78%) saying they’d like to do so
again. Approximately 60% of older clients (ages 46-70) who have not
discussed the topic say they either want to or are willing to if
the topic came up.
Across all ages, potential expenses for their own care is the
health and security topic that clients most want to broach for the
first time (53%).
Housing
Across all four health- and security‐related topics surveyed,
housing is the topic that clients are most eager to
revisit—especially younger clients, 88% of whom say they want to
return to the topic. Among those who have not yet discussed their
current housing situation, most want or are willing to have an
initial conversation (79%), with the youngest clients again
expressing the greatest level of interest (92%).
Family and Loved Ones’ Finances
In addition to talking about their own finances, more than half
of clients (58%) say they have discussed family and loved ones’
finances with their financial professional.
Younger clients (ages 30-45) are most likely to have had this
discussion (72%). Further, 82% percent of younger clients expect
their financial professionals to continue to advise them on this
topic, as do 74% of middle-aged clients (ages 46-60) and 54% of
older clients (ages 61-75). This points to a willingness for
financial advisors to include the topic of family and loved ones’
finances in ongoing conversations with clients of all ages.
Retirement Planning
Along with physical health, respondents say they are most
concerned with their financial plan for retirement. While the vast
majority (92%) of clients surveyed have already discussed
retirement with a financial professional, 85% say they want to
continue discussing the topic. Two-thirds of those who have not
discussed their financial plan for retirement say they want to,
reinforcing the point that retirement planning remains a crucial
part of the conversation.
Qualities of an Ideal Financial Professional
To help better understand evolving client needs and
expectations, the study also explored factors beyond financial
performance that drive client satisfaction. The top driver for
middle‐aged and older clients—and the second most important driver
for younger clients—is the advisor’s understanding of their
financial and life goals, underscoring the importance of deepening
client conversations.
“The future of advice is at a crossroads. While robo-advice—or
advice by algorithm—brings efficiency, technology alone cannot
replicate the full value proposition of a highly engaged advisor,”
said Joe Coughlin, Ph.D., Director of MIT AgeLab. “Trusted,
successful financial transactions are only part of the story. The
balance comes from the more personal, ‘softer’ aspects of the
relationship–and relationships, boiled down, consist of
conversations.”
Personal connections make a difference, with many survey
respondents saying they value financial professionals who look
beyond financial domains and take a wider view of their lives and
their plans for the future. When asked about the role an ideal
financial professional should play, more than half (54%) say
“helping me plan for the future.” More than one-third of younger
clients say they view their ideal advisor as a life coach (40%) or
friend (35%) and note their financial professional’s network (53%)
and personality (48%) as key drivers of satisfaction.
The survey finds that most clients are satisfied with their
current financial professional; however, about 1 in 5 (19%) say it
is possible they could part ways. While two of the top four reasons
for leaving a financial professional relate to portfolio
performance and service (49% and 48%, respectively), the other
two—relocation (28%) and lack of personal connection (25%)—are not
related to financial matters or service concerns. With more clients
getting used to virtual meetings, “relocation” could become a
lesser concern for financial professionals who are prepared to make
a virtual relationship easier for clients. By broadening
conversations to include non‐financial topics that are of
importance to clients, there is an opportunity to deepen personal
connections.
“Even in a high-tech world, people still want someone to talk
to, someone to explain complex financial concepts, and someone to
understand them as unique individuals,” continued Kevin
Hogan. “As people move through different life stages, they’re
not looking to be stereotyped–they’re seeking someone who truly
understands them and will work with them to identify their specific
financial and life needs, rather than placing them in a demographic
or a pre-programmed investing profile.”
Additional information regarding the study, including an
executive summary, can be found here.
Survey Methodology
The MIT AgeLab conducted a national survey of 2,038 participants
between March 6 and March 26, 2020. The survey asked participants
when, where and how they interacted with financial professionals
and what topics they felt most comfortable and interested in
discussing. Participants ranged in age from 30 to 75 and reported a
yearly household income of $50,000 or more and total savings of
$50,000 or more, including savings accounts, checking accounts and
investment or retirement accounts. All participants reported
regularly working with a financial professional.
Sample Characteristics
Survey respondents were distributed relatively evenly across
ages (33% 30-45, 34% 46-60, 34% 61-75) and gender (50% female, 50%
male). Additionally, the majority of the sample reported working
full-time (58%), while the next largest employment group reported
being retired (26%). Other, smaller employment categories included
working part-time, being self-employed, being unemployed, and being
a student.
About AIG Life & Retirement
AIG Life & Retirement, a division of AIG (NYSE: AIG), brings
together a broad portfolio of protection, retirement savings,
investment and lifetime income solutions to help people achieve
financial and retirement security. The business consists of four
operating segments – Individual Retirement, AIG Retirement
Services, Life Insurance and Institutional Markets – and holds
longstanding, leading market positions in many of the markets it
serves.
AIG Life & Retirement includes AIG member insurance
companies American General Life Insurance Company (Houston, TX),
The United States Life Insurance Company in the City of New York,
and The Variable Annuity Life Insurance Company (VALIC), Houston,
TX as well as their affiliates. Securities products are distributed
by AIG Capital Services, Inc., member FINRA. Additional information
about AIG Life & Retirement can be found at www.linkedin.com/showcase/aig-life-&-retirement.
About AIG
American International Group, Inc. (AIG) is a leading global
insurance organization. AIG member companies provide a wide range
of property casualty insurance, life insurance, retirement
solutions, and other financial services to customers in more than
80 countries and jurisdictions. These diverse offerings include
products and services that help businesses and individuals protect
their assets, manage risks and provide for retirement security. AIG
common stock is listed on the New York Stock Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn:
www.linkedin.com/company/aig. These references with additional
information about AIG have been provided as a convenience, and the
information contained on such websites is not incorporated by
reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries and jurisdictions, and coverage is subject to
underwriting requirements and actual policy language. Non-insurance
products and services may be provided by independent third parties.
Certain property-casualty coverages may be provided by a surplus
lines insurer. Surplus lines insurers do not generally participate
in state guaranty funds, and insureds are therefore not protected
by such funds.
About MIT AgeLab
The MIT AgeLab was created in 1999 to invent new ideas and
creatively translate technologies into practical solutions that
improve the quality of life of older adults and those who care for
them. Through research ranging from longevity planning to
caregiving, transportation, smart home, multigenerational work, and
more, the AgeLab applies consumer-centered systems thinking to
understand the challenges and opportunities of longevity and
emerging generational lifestyles to catalyze innovation across
business markets. Follow the MIT AgeLab on Twitter @MIT_AgeLab.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200826005418/en/
Sabra Purtill (Investors): sabra.purtill@aig.com Shelley Singh
(Investors): shelley.singh@aig.com Marc Hazelton (Media):
marc.hazelton@aig.com Matt Burkhard (Media):
matt.burkhard@aig.com
American (NYSE:AIG)
Historical Stock Chart
From Mar 2024 to Apr 2024
American (NYSE:AIG)
Historical Stock Chart
From Apr 2023 to Apr 2024