Pain Points & Actions:
Using the Biggest Advice Gaps to Jump Start Consumer Conversations
Order Report - Pain Points & Actions:: Using the Biggest Advice Gaps to Jump Start Consumer Conversations
Report Overview
Today, more households are seeking help for financial tasks. This report looks at which tasks consumers find difficult, and which consumer segments find certain tasks difficult. Gen X and Millennials are increasingly seeking help on multiple tasks, which aligns with the finding in November's Attitude and Sentiments report that these generations have experienced a financial awakening. Most importantly the reports explores where the biggest advice gaps are which can help jump start conversations on product and service solutions with your customers!
Key Findings
- More households report seeking help for multiple financial tasks with growth being driven by households with $100K-<$500K.
- Millennials and Gen X are increasingly seeking help on multiple tasks. Difficulty with tasks drops off markedly with higher assets, but not higher income.
- Many households who find tasks difficult do not seek help, creating advice gaps. Advice gaps occur more frequently in younger than older households.
- The biggest advice gaps are “handling market volatility emotionally,” choosing appropriate investments, estimating/calculating RMDs and estate planning.
- Consumers are more likely to see value in paying for advice when tasks are difficult and even more likely when they have experienced advice.
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Sample Report Pages
Table of Contents
1: More households report seeking help for multiple financial tasks with growth being driven by households with $100K-<$500K. 9-17
1.1: Exhibit 1.1 – Difficulty With Financial Tasks, Task Applies or Not: National, 2021
9
1.2: Exhibit 1.2 – Difficulty With Financial Tasks: National, 2021
10
1.3: Exhibit 1.3 – Number of Financial Tasks Sought Help for: National, by Year
11
1.4: Exhibit 1.4 – Number of Financial Tasks Sought Help for: 0 Tasks and 3+ Tasks, by Investable Assets, by Year
12
1.5: Exhibit 1.5 – Number of Financial Tasks Rated Very Difficult (8-10): by Investable Assets, 2021
13
1.6: Exhibit 1.6 – Number of Financial Tasks Rated Very Difficult (8-10): National, by Year
14
1.7: Exhibit 1.7 – 3+ Financial Tasks Rated Very Difficult (8-10): by Investable Assets, by Year
15
1.8: Exhibit 1.8 – Number of Financial Tasks Sought Help for: Accumulators & Pre-/Post-Retirees, by Year
16
1.9: Exhibit 1.9 – Number of Financial Tasks Sought Help for: 0 Tasks and 3+ Tasks, by Lifestage, by Year
17
2: Millennials and Gen X are increasingly seeking help on multiple tasks. Difficulty with tasks drops off markedly with higher assets, but not higher income. 18-25
2.1: Exhibit 2.1 – Number of Financial Tasks Sought Help for: by Generation, by Year
18
2.2: Exhibit 2.2 — Number of Financial Tasks Sought Help for: by Generation, by Attitude “COVID-19 has Changed my Attitudes Towards Saving & Investing,” 2021
19
2.3: Exhibit 2.3 — Number of Financial Tasks Rated Very Difficult (8-10): by Lifestage, 2021
20
2.4: Exhibit 2.4 — Difficulty with Financial Task “Choosing Appropriate Investments”: by Lifestage, 2021
21
2.5: Exhibit 2.5 — Difficulty with Financial Task “Estate Planning”: by Lifestage, 2021
22
2.6: Exhibit 2.6 — Difficulty with Financial Task “Figuring Out How to Fund my Expenses”: by Lifestage, 2021
23
2.7: Exhibit 2.7 — Number of Financial Tasks Rated Very Difficult (8-10): by Investable Assets, 2021
24
2.8: Exhibit 2.8 — Number of Financial Tasks Rated Very Difficult (8-10): by Annual Household Income, 2021
25
3: Many households who find tasks difficult do not seek help, creating advice gaps. Advice gaps occur more frequently in younger than older households. 26-38
3.1: Exhibit 3.1 – Crosstab Analysis for Number of Tasks Rated Very Difficult (8-10) by Number of Tasks Sought Help for: National, 2021
26
3.2: Exhibit 3.2 – Sought Help With “Choosing Appropriate Investments”: by Level of Difficulty, National, 2021
27
3.3: Exhibit 3.3 – Difficulty and Seeking Help for Financial Task “Choosing Appropriate Investments”: National, 2021
28
3.4: Exhibit 3.4 – Market Size of Advice Gaps in Households, by Task: National, 2021
29
3.5: Exhibit 3.5 – Top 5 Advice Gaps: Accumulator Lifestages, 2021
30
3.6: Exhibit 3.6 – Top 5 Advice Gaps: Fully Employed Seniors, Pre-Retirees and Post-Retirees, 2021
31
3.7: Exhibit 3.7 – Lifestage by Generation: 2021
32
3.8: Exhibit 3.8 – Advice Gap by Task: Millennial Accumulators, by Year
33
3.9: Exhibit 3.9 – Advice Gap by Task: Gen X Accumulators, by Year
34
3.10: Exhibit 3.10 – Advice Gap by Task: Boomers by Lifestage, 2021
35
3.11: Exhibit 3.11 – Advice Gap by Task: Boomer Late Careers, by Year
36
3.12: Exhibit 3.12 – Advice Gap by Task: Boomer Pre-Retirees, by Year
37
3.13: Exhibit 3.13 – Advice Gap by Task: Boomer Post-Retirees, by Year
38
4: The biggest advice gaps are “handling market volatility emotionally,” choosing appropriate investments, estimating/calculating RMDs and estate planning. 39-50
4.1: Exhibit 4.1 – Market Size of Advice Gaps in Households and Investable Assets, by Task: Assets <$5M, 2021
39
4.2: Exhibit 4.2 – Market Size of Advice Gaps in Households, by Task: by Investable Asset Groups: 2021
40
4.3: Exhibit 4.3 – Market Size of Advice Gaps in Assets, by Task: by Investable Asset Groups <$5M: 2021
41
4.4: Exhibit 4.4 – Market Size of Advice Gaps in Assets, by Task: Households with $5M+, 2021
42
4.5: Exhibit 4.5 – Market Size of Advice Gaps in Assets, by Task: by Investable Asset Groups: 2021
43
4.6: Exhibit 4.6 – Market Size of Advice Gaps in Assets, by Task: Households With $1M-$2M, 2021
44
4.7: Exhibit 4.7 – Market Size of Advice Gap – Financial Task: Estimating/Calculating RMDs: by Investable Asset Groups, 2021
45
4.8: Exhibit 4.8 – Market Size of Advice Gap – Financial Task “Handling Market Volatility Emotionally”: by Investable Asset Groups, 2021
46
4.9: Exhibit 4.9 – Market Size of Advice Gap – Financial Task “Estate Planning”: by Investable Asset Groups, 2021
47
4.10: Exhibit 4.10 – Market Size of Advice Gap – Financial Task “Managing Finances of Loved Ones as They Age”: by Investable Asset Groups, 2021
48
4.11: Exhibit 4.11 – Market Size of Advice Gap – Financial Task “Deciding Whether to Convert a Traditional Retirement Account to a Roth Retirement Account”: by Investable Asset Groups, 2021
49
4.12: Exhibit 4.12 – Market Size of Advice Gap – Financial Task “Developing a Financial Plan to Balance My Short-term and Long-term Financial Goals”: by Investable Asset Groups, 2021
50
5: Consumers are more likely to see value in paying for advice when tasks are difficult and even more likely when they have experienced advice. 51-56
5.1: Exhibit 5.1 – Crosstab Analysis for Difficulty with Financial Task “Choosing Appropriate Investments” by Attitude “See Value in Paying for Professional Financial Advice”: National, 2021
51
5.2: Exhibit 5.2 – Crosstab Analysis for Difficulty with Financial Task “Managing the Finances of my Loved Ones as They Age” by Attitude “See Value in Paying for Professional Financial Advice”: National, 2021
52
5.3: Exhibit 5.3 – Crosstab Analysis for Difficulty with Financial Task “Developing a Financial Plan to Balance My Short-Term and Long-Term Financial Goals” by Attitude “See Value in Paying for Professional Financial Advice”: National, 2021
53
5.4: Exhibit 5.4 – Crosstab Analysis for Number of Financial Tasks Sought Help For by Attitude “See Value in Paying for Professional Financial Advice”: National, 2021
54
5.5: Exhibit 5.5 – Crosstab Analysis for Number of Financial Tasks Rated Very Difficult (8-10) by Attitude “See Value in Paying for Professional Financial Advice”: National, 2021
55
5.6: Exhibit 5.6 – Crosstab Analysis for Agreement with Attitude “My financial advisor is a partner to me” by Difficulty with Financial Task “Choosing Appropriate Investments”: National, 2021
56
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