Two-thirds of Americans do not have a long-term financial plan and even more (71 percent) do not have a financial advisor, according to a survey by Northwestern Mutual.
This is despite the fact that 60 percent of people say their financial planning needs improvement, according to the 2014 “Planning and Progress Study” by Northwestern Mutual, which polled 2,092 Americans age 18 and older.
Although personal finances are a top priority for Americans, along with personal health, most do not seem to be taking action to improve their financial situations, says Northwestern Mutual.
According to the study, 70 percent of Americans feel the economy will experience future crises, and 52 percent feel a financial plan would help them cope with the ups and downs of the market.
Of those who use a financial advisor, 69 percent consider themselves disciplined planners and 68 percent feel financially secure. Americans 60 years of age and older are three times as likely to have a financial advisor as those 18 to 29 years old (41 percent versus 13 percent), and people married or living with a partner are twice as likely to have an advisor than those who are not married (33 percent versus 17 percent).
“In the same way that most people wouldn't hesitate to see a doctor, or even work with a personal trainer, we believe more Americans need to see their finances in a similar light,” says Greg Oberland, Northwestern Mutual president. “While finance is obviously different than health, both are highly complicated and have long-term implications. As a result, expert advisors are critical.”