A new survey published by Prudential Financial says Americans are inadequately prepared for retirement, and one of the reasons is that they lack understanding of how to save and the proper products to invest in.

Americans have expressed concern about the amount of money they have saved for retirement. Some believe they have not saved enough and others think they may outlive what they have saved.

Of 2,000 people surveyed by Newark, N.J.-based Prudential and Brooklyn, N.Y.-based OnePoll, 26% said they do not know what they need to do to plan for retirement. This lack of knowledge means many are not properly preparing for retirement.

Fifty-nine percent of those polled were not enrolled in a 401(k) plan, and of those who were, 21% did not know how much money they had in it. Finally, 65% said they either did not have or did not know what an IRA was, the study said.

“I think [the survey] is eye-opening and should inspire financial advisors to work even harder,” said Ethel Boyd, director of the Personal Advisory Group at Prudential Financial. “It makes it so clear just how much help people need and they can always improve their situation.”

The survey found that a lack of financial understanding has a direct impact on a person’s preparedness for retirement, as 70% of those who plan to retire said they are not sure if they have the means to do so.

A major reason is that 40% do not think they have enough money to retire and about 70% said they are behind on certain life goals they thought they would have achieved by now. 

Advisors serve an important role for Americans who want to retire and not just pre-retirees. Younger generations are also eager to save for retirement and speak to someone about those plans, according to Boyd.

“It is clear to us that there are a lot of people in their 20s who want to talk about financial planning,” she said. 

Online portals are key access points for those seeking advisory help, the survey found. Of those questioned, 65% said they are willing to use online tools if they can eventually connect with an advisor remotely. In addition, 62% said they would use those tools if they could connect with the advisor in person. 

“The hybrid approach alone isn’t a magic wand to instilling confidence in consumers,” said Brad Hearn, president of retail advice and solutions at Prudential in a release about the survey. “The solution will require a personalized approach to retirement planning that’s guided by an individual’s goals and current financial situation.”

A major obstacle for the average American seeking financial counsel is that many are unsure whether they have enough money to warrant seeking an advisor in the first place. However, there are advisors who serve different asset classes, including middle-tier Americans, Boyd said. 

Web tools can attract investors who aren’t sure. In November, Prudential rolled out Prudential Stages for Retirement, an online tool that creates a confidence score so investors can track their retirement goals. Once users receive their confidence score, they can make an appointment with a Prudential advisor either in-person or virtually.

Clients “definitely think that they have to have some big number of dollars to have to talk to an advisor and that’s why I think tools like [Prudential Stages] that lead them in to talk to someone and let them start that conversation without any big commitment or any dollar amount are really powerful,” Boyd said.

She reiterated that the survey serves as a reminder to advisors how much investors need their help. Advisors should be making efforts to reach out to those individuals using the tools that are available.

“The customer is always better off if they speak with an advisor getting some direction on what the next best step is,” she said.