Making retirement security a reality
Published in: Business
Transcript
- 1. MAKING ' H '99 RETIREMENT . SECURITY AREALITY WHAT CAN FINANCIAL INSTITUTIONS AND ADVISORS DO? Despite better economic and investment conditions, retirement security remains a major challenge. of Americans responding to a survey by the National Institute on Retirement Security feel that the country is heading towards a retirement "crisis. " of those surveyed still don't feel secure about their retirement and of these people say that's because they can't save enough. WHY IS THERE SUCH A DISCONNECT BETINEEN CONSUMERS AND FINANCIAL INSTITUTIONS OR ADVISORS ABOUT RETIREMENT SECURITY? Saving for retirement is easier said than done due to multiple other commitments. ll I Disagree Neither agree nor disagree I Agree I Consumers‘ opinion on conflicting priorities 62% I have too many immediate financial needs to commit any significant savings right now to secure my retirement. 6-34 3545 46-55 Age group N This remains a significant barrier for consumers without advisors. HOWEVER, MOST CONSUMERS HAVE A LINGERING DISTRUST OF THE FINANCIAL SERVICES INDUSTRY AND ADVISORS. 51% of respondents prefer managing their portfolio of retirement assets on their own “vi Our survey suggests this lack of awareness is consistently high across age and income segments. Sk . ''(3‘. ‘. NEARLY ANOTHER ' of those surveyed by Deloitte say they have heard don't know anything of the product, but don't about target date mutual funds. understand how it works. Mass media communication and advertising, though widely used, is least effective. III A Advisors rate face-to-face interaction as most effective for relationship-building, followed by phone calls. The five barriers to retirement security will not be easy to overcome. The good news is that innovative solutions are on the horizon. Financial services firms should take the initiative in a bigger and bolder way, reestablishing their credibility as problem solvers rather than simply product sellers while earning the trust of more consumers along the way. J , REACH (0Y‘iSI'. IERS V ? - OOQQ EM POWER CLIENTS RE| I/ IAGINE FOSTER DISCIPLINE ‘Sean Cunniff, Sam Friedman, and Val Srinivas, Making retirenient security a reality. ‘ What can financial institutions and advisors do? , Deloitte University Press, May 1, 2015. Visit http: //clLipresS. com/ articles/ US—retirement—criSiS—financial-ServiceS—firm5/ to access the full results of the study and to download the full report. e O tte Re-searcli peI‘Ioimed by the Deloiite center for FInanL‘. a| services. Un| VeT5|tY Grzii DE'IOlIIiE. ‘ UlI| 'i. r’E'l'SlI'jv' PIPSS | «: lLipi‘ess. coin " gm OI 5 Doloitte D ipinerit LLC. All rights.