Retirement savers rely heavily on commission-based finance professionals, according to new survey results.
Only about one in 10 retirement savers surveyed by the American Council of Life Insurers are very confident that they could handle financial planning without professional help.
The finding is based on a survey of 506 people who are financial decision makers between the ages of 55 and 70, have an annual household income of $35,000 to $149,999, and have between $25,000 and $235,000 in savings and of investments. The survey was conducted from March 10 to April 18.
Respondents work with commission-based finance professionals or plan to work with one in the near future, rather than just one charging “an ongoing regular fee arrangement for portfolio management” , according to the ACLI.
Nine out of 10 respondents said they depended on this professional for retirement planning “at least to some degree,” according to the ACLI.
And nearly all respondents find their discussions with a finance professional at least somewhat helpful, and only 2% think they’re not too helpful, according to the survey.
In addition, nearly eight in 10 respondents think their professional is worth the money they pay them, according to the ACLI.
The ACLI, with the National Association of Insurance and Financial Advisors and the Securities and Capital Markets Industry Associationplayed a key role in obtaining the Ministry of LabourThe fiduciary rule was struck down in court in 2018, as noted. This rule was intended to require retirement account advisors to put the interests of clients first and to avoid or clearly disclose any potential conflicts of interest, including with respect to commissions and other income.
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