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Ask for direction

Dec 8, 2020
Empower Insights

How accessing advice can get you headed in the right direction

On your road to retirement, you may experience many different twists and turns as you advance in your career.

Maybe some savings speed bumps, too.

But slowing down and getting guidance can help steer you in the right direction when it comes to navigating your financial journey. In fact, as Empower Retirement insight indicates, employees who access any sort of professional advice are accelerating toward their long-term goals at a better pace than those who are driving alone and making key decisions on their own.1 Seeking education from an expert is also a healthy habit that is known to help people replace more of their working income in the future.2,3

After all, 70% of individuals claim paving the way for their retirement still remains a main financial focal point.4

For the most part, not only do the majority of people want support, they also take significant steps when they acquire it. Whether they increase their deferral rate, stay the course during economic uncertainty or continue to engage in their retirement planning, advice users are more prepared for the long haul than “do-it-yourself” investors who may overreact to sudden shifts in the market.5

So, if you’re looking to enjoy your ride to retirement and move forward on a successful path, what are your options?

Human

Let’s face it. With so many financial obligations to address in your normal routine, including your retirement readiness, managing your money can certainly present its fair share of challenges as you get older. If you’re stuck in neutral, speaking to an advisor can help you balance your growing list of priorities.

In-person advice comes in a wide variety of forms:

  • Group meetings
  • One-on-one appointments
  • Virtual sessions 
  • Phone calls

No matter which avenues are available to you, though, conversing with a “real” licensed advisor on a regular basis is a powerful way to make progress on achieving the lifestyle you imagine for the future. Regardless of whether retirement is right around the bend or still years away, studies show that utilizing personalized advice can help you satisfy the savings needs you have today — and tomorrow.6

It’s also important to note that using fiduciary advice to stay on track goes beyond just receiving input on saving and investing. Registered representatives at some firms, for example, can provide financial wellness recommendations on topics like building a budget, starting an emergency fund and managing debt, and they can also deliver best-interest guidance on rollovers, distributions and loans.7,8,9

Digital

Online tools, like robo-advisors, are also valuable vehicles that can help you elevate your overall financial approach as you age. These types of automated services implement strategic solutions, advanced algorithms and your particular preferences to craft, diversify and monitor your investment portfolio for you.10

Research suggests they can have a dynamic impact, too.

As recent intelligence from Empower reveals, individuals who are maximizing their resources and benefitting from both human and digital advice are in line to replace 98% of their working income when they retire. That score drops to 61% for those who are not engaging with any type of guidance.11

Animated graphic of a laptop computer with several financial charts

Workplace plan

Ready to set the wheels in motion?                                                                                

If you’re interested in adopting advice along your route to retirement, start by checking with your workplace retirement program to see what options are offered, such as a managed account. In some situations, you may even be defaulted into a featured product to help you gain traction on your savings target.12 Generally, participants who network with an advisor connected to their company’s plan reach more optimal outcomes than workers who partner with an outside specialist.  

Contact your employer to learn what advice opportunities are currently being extended to eligible employees.

Find your direction with an Empower Investment Account

1 Empower Institute, “Closing the Advice Gap: Employees could benefit from advice about their retirement finances, but few get it,” October 2020.

2 Empower Institute, “Scoring the Progress of Retirement Savers 2020,” September 2020.

3 Empower Retirement, “Healthy savings habits: Simple exercises for strengthening your financial future,” October 2020.

4 Empower Institute, “The Goal Line: The relationship between savings goals and retirement confidence,” April 2019.

5 Empower Retirement, “A higher standard: How new financial advice rules affect retirement plans,” June 2020.

6 CNBC, Jessica Dickler, “75 percent of Americans are winging it when it comes to their financial future,” April 2019.

7 PLANSPONSOR, Rebecca Moore, “Extending Financial Wellness Into Retirement,” February 2020.

8 Empower Retirement, “A higher standard: How new financial advice rules affect retirement plans,” June 2020.

9 FINRA, finra.org.

10 NerdWallet, Arielle O’Shea, “What Is a Robo-Advisor and Is One Right for You?” July 2020.

11 Empower Institute, “Scoring the Progress of Retirement Savers 2020,” September 2020.

12 Empower Institute, “Closing the Advice Gap: Employees could benefit from advice about their retirement finances, but few get it,” October 2020.

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