Financial advisers believe it’s not viable to have clients with retirement savings less than $100,000, a study by the Financial Markets Authority (FMA) reports.
The study, which included a survey of 104 people using a financial adviser, found nearly half had savings of at least $450,000.
A separate FMA-commissioned survey of 501 consumers aged 60 to 74 found only a minority (29%) used a financial adviser to get help with retirement planning. Many sought advice from family or friends or did their own research instead.
Consumers who did their own homework were no less likely to feel they were financially prepared for retirement compared with consumers who paid for financial advice.
The research shows using a financial adviser isn’t the only option for being confident in your retirement planning, says FMA external communications and investor capability director Paul Gregory. Talking with friends, opening books or using the internet is just as good, he says.
Not surprisingly, income influences how likely people are to seek financial advice. FMA’s survey found consumers with personal income under $20,000 and retirement savings under $50,000 were less likely to look for retirement planning information.