Many retirement plan participants lack the financial knowledge needed to manage their portfolios on their own, underscoring the importance of advice.
Summary
Using participant-level data from TIAA, this study sheds new light on demand for advice within retirement plans. In addition to examining how demand varies based on participant demographics, the authors explore how demand is affected by default investment options and the means by which advice is offered.
Key Insights
- Demand for advice on asset allocations and income planning increased four-fold among study participants after online advice tools were introduced.
- Older participants and those with larger account balances are more likely than others to seek out advice.
- Demand tends to be higher among plan contributors than non-contributors and is significantly higher among contributors with web access.
