In the wake of the Covid-19 pandemic, financial advice clients are far more interested in retirement planning and protecting their investments against inflation than saving for their children's higher education, according to a recent report.
Since the start of the pandemic, 60% of financial advisors say retirement planning has become more important for their clients, FA-IQ sister publication Ignites writes, citing a Capital Group survey of 671 advisors, each with more than $5 million in total client assets.
Moreover, close to half of the advisors say that their clients’ priority is generating income from investment, and 44% say their clients want help managing inflation, according to the survey cited by the publication.
On the other hand, only 5% of advisors say clients’ top priority is saving for their children's education, Capital Group found, according to Ignites. And only 10% of respondents say that their clients are more focused on education saving now than before the pandemic struck, Ignites writes, citing the survey.
That lack of interest may be due to changing attitudes toward higher education: close to a third of advisors in the survey said that the “perceived value of a college degree” has dropped, according to the publication.
“One of the things that we saw in the pandemic was a real question about the value [of a college degree], particularly when universities went virtual,” said Andrea Feirstein, managing director of AKF Consulting Group, according to Ignites.
Meanwhile, close to 80% of advisors say that clients underestimate their education savings needs, Capital Group found, according to the publication.
For a public college, the average annual cost of tuition and fees reached $10,388 for the 2021-2022 academic year, while for private colleges the average was $38,185, U.S. News reported, according to Ignites.
Do you have a news tip you’d like to share with FA-IQ? Email us at firstname.lastname@example.org.