Almost twice as many people who work with a financial advisor know how much money they will withdraw annually from savings when they retire compared to those who don't work with an advisor, says a new study by Franklin Templeton.
The study, "Retirement Income Strategies and Expectations," found that 66% of people who work with an advisor know how much they will withdraw from savings in retirement versus 36% who don't work with an advisor. More than a third (35%) who have never worked with an advisor say they do not think about how they will approach different sources of retirement income.
Among people who have work with an advisor, 24% fear running out of money in retirement. Among those who have never worked with an advisor, that number jumps to 35%.
Of the respondents not using an advisor, 41% say it is because they don't think they have enough money to warrant it, while 30% say they prefer doing their own planning. Currently, 79% of Americans don't work with an advisor but nearly 47% say they would consider it if the advisor prepared a written retirement plan.
"Sitting down and discussing their concerns, plans and strategies for retirement with a financial professional is a key step towards defining and putting together a plan to reach their goals," said David McSpadden, senior vice president of Global Advisory Services for Franklin Templeton.
The study was conducted with more than 2,000 adults.