Baby boomers and Gen Xers want to maintain human contact with their financial advisors, despite the rise of robo-advisors, says a study by Allianz Life released Tuesday.
The study, “Generations Apart,” shows that 69 percent of both generations say they do not trust online financial advice, which makes personal advice more important.
At the same time, 46 percent of Gen Xers, those born between the mid-1960s and early 1980s, and 24 percent of baby boomers say they have some interest in exploring robo-advisors. Only 10 percent of both groups say they would be comfortable having their relationship with their financial advisor exist entirely online. The survey included 2,000 people age 35 to 67 with at least $30,000 in annual income.
Forty percent of respondents said they regularly visit financial websites, with 13 percent making daily visits and 22 percent doing some trading online.
“Robo-advisors are generating a lot of buzz in the personal finance world, but when it comes to fully relying on them, both Gen Xers and boomers hesitate and instead recognize the value of a real person giving personalized advice,” says Katie Libbe, Allianz Life vice president of consumer insights. “Both generations say they’re concerned about retirement, so it’s crucial that they have access to financial professionals who address their specific needs beyond asset allocation and accumulation, and shift their recommendations as personal circumstances change.”
When asked what were the most valuable things a financial advisor currently does or could do for them, both generations said that planning for long-term financial goals would be difficult to get online.