Financial advisors have a more responsive audience among retirement savers from Generations X and Y than from those in the youngest generation, according to a new report.
Among so-called “Super Savers” — who put away at least 15% of their income or 90% or more of the Internal Revenue Service maximum — financial professionals were the top trusted source for information related to retirement planning, cited by 48%, according to a survey by Principal Financial Group.
In addition, 40% of respondents cited financial company websites or mobile applications as a source of information, while 37% cited retirement-plan service providers, according to the survey, which queried 1,120 retirement-plan participants ages 18 to 57 who were contributing $17,550 or more to a retirement plan in 2021 and/or deferring 15% or more to their retirement plan.
The survey was fielded from June 24 to July 5.
"Super Savers are savvy and perceptive, so it’s encouraging to see such a high percentage of them looking to financial experts for information and guidance," Sri Reddy, senior vice president, retirement and income solutions at Principal, said in a statement.
Generations X and Y in particular put financial professionals’ advice above all else, Principal says it found.
Not so for Generation Z investors, 55% of whom rely on family and friends first, according to the survey.
Principal says it also found that many respondents were staying the course despite the market turmoil this year, with 45% making no changes to their investments.
At the same time, 67% of respondents reported having made lifestyle changes to account for inflation, including by adjusting travel and entertainment spending or assessing spending habits and monthly budgets, according to the survey.
In addition, Principal says it found that paying off debt was the top priority over the next two to three years for the respondents in the survey.