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Closing the advice gap

Oct 8, 2020
Empower Institute

Employees could benefit from advice about their retirement finances, but relatively few of them get it

 

Americans rely on advice related to their retirement savings, especially during times of market volatility. However, research from Empower Institute suggests only a third of employees actually use advisory services.

Research from the Empower Institute’s Retirement Progress Score Study shows that even employees with relatively small balances appear more likely to be able to replace their income in retirement if they use a human or digital advisor. As a result, employers have an opportunity to support their employees by offering advice through workplace plans.

Key findings

  • Employees who use both digital and human advisors appear to benefit even more than those who only use one or the other.
  • Advice can improve employees’ ability to replace their income in retirement regardless of how much they earn.
  • Advice can also improve retirement readiness across career stages.
  • Providing advice through a workplace retirement plan can make an even bigger impact on employees’ ability to save.
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