Although consumers currently working with financial advisors are generally satisfied with their relationships, they are seeking more personalised engagement and a more human-centric approach to their investments, according to new survey data from Hartford Funds.
Hartford Funds surveyed more than 500 investors who are currently working with a financial advisor in order to gain insights into Americans’ preferences and drivers when it comes to their client-advisor relationships.
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Hartford Funds senior vice president of strategic markets John Diehl said: "The emotional relationship between advisors and clients has never been more important than it is today. We live in a time when information is at consumers’ fingertips and it is the job of the advisor to quiet the noise. Advisors should not only be expected to deliver on quantitative performance, but also take a human-centric approach to advice by offering holistic financial counsel based on clients’ individual goals and needs."
The data revealed that twice as many investors value relationships with their financial advisors over performance.
Only 32 percent of respondents felt that a financial advisor who is focused on delivering superior investment performance is what’s most important.
The overwhelming majority (86 percent) of respondents identified an area where they’d like to see improvement from their advisor.
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By GlobalDataNearly a quarter (22 percent) identified wanting advisors to take more time on education about the financial planning process and their investments as the top areas needing improvement.
More personalized advice was the second most frequently cited area (14 percent), followed by wanting advisors to care more about them as people and not just clients (13 percent).
Most respondents’ main driver to begin working with a financial advisor was to plan smartly for retirement (61 percent). However, only half (51 percent) strongly agree that their financial advisor talks with them about what life will be like when they retire.
Nearly one in five say their financial advisor does not talk with them at all about what life will be like in retirement.
Diehl continued: "Advisors understand that context is key in helping clients set the right goals for retirement. Because retirement is often the trigger for the relationship, it is alarming that more than half of respondents feel that advisors aren’t talking to them about life in retirement. Advisors need to find creative ways to continue the conversation about goals and the motivations for reaching them."
Perhaps the most significant group that advisors have an opportunity to engage with is pre-retirees between the ages of 45-64.Nineteen percent of these respondents would like more personalized advice and to be cared about more as a person.
Despite approaching retirement age and an increasing need for income, only 47 percent of respondents within that age group strongly agree that their financial advisor talks about what life will be like when they retire.
The data also suggests that the effort to effectively engage women is paying off. More than four out of five women (84 percent) strongly agree that their advisor actively listens to them and nearly the same number (79 percent) strongly agree that their financial advisor provides them with the appropriate guidance for their individual needs.
Women were also 15 percent more likely than men (59 percent versus 44 percent) to strongly agree that their financial advisors speak with them about what life will be like in retirement.
Perhaps as a result, 74 percent of women strongly agree they have a trusted relationship with their financial advisor both professionally and personally.
