Clients are only as happy with their financial advisor as they are with their retirement plan.
That is the finding of a study released by the LIMRA Secure Retirement Institute in the fourth edition of The Retirement Income Reference Book.
According to the study, twice as many clients with a formal retirement plan said they were satisfied with their advisors than those without one.
The study attributed the findings to client stress in financing a retirement plan.
Sixty-five percent of pre-retirees and retirees with a formal retirement plan said that their advisor understood their long-term needs, while just 34 percent of those without a formal plan said their advisor had the same understanding.
Fifty-six percent of those with a formal plan said their advisor provided excellent value for the fees they were charged, while 28 percent of those without a plan said they were getting the same value for their money.
Fifty-four percent of clients with a formal retirement plan said their advisors put their interests first, compared with 25 percent of clients that did not have a formal retirement plan.
The study underscores the importance of developing a formal retirement plan. By assisting clients reach their future financial goals, advisors earn their trust and loyalty.