TIAA-CREF Survey Shows Two-Thirds of Americans Trust Financial Advice from Employers

NEW YORK--(BUSINESS WIRE)--According to a recent study released by TIAA-CREF, 66 percent of employed individuals surveyed said they trust the financial advice provided by their employers. Only 27 percent of employees, however, seek financial advice at work, compared to the 42 percent who turn to friends and family for advice.

“And the fact that many individuals turn to family and friends for advice points to an important opportunity for employers to help their workers access professional, objective advice to build their financial well-being.”

The survey was conducted by an independent research firm and polled a random sample of more than 1,000 adults nationwide on their attitudes, preferences and behaviors about receiving financial advice.

“While employers aren't always the first source for financial advice, when employees have access to advice through the worksite, it carries significant weight,” said Ed Moslander, senior managing director, Institutional Sales and Service, TIAA-CREF. “And the fact that many individuals turn to family and friends for advice points to an important opportunity for employers to help their workers access professional, objective advice to build their financial well-being.”

Additional analysis of TIAA-CREF’s own client base shows that employer-sponsored plans evoke trust and action. Individuals who received advice through their employer-sponsored TIAA-CREF retirement plans are five times more confident about their savings than the average American.¹ In addition, participants who received TIAA-CREF’s advice, on average, may have $200,000 more in savings at retirement over the course of a 30-year career.²

“We’ve seen firsthand how personalized and objective advice in the workplace helps drive positive outcomes for our clients.³ Last year, two-thirds of those participants who took advantage of TIAA-CREF’s advice took action – choosing to save more, review their retirement plan portfolio allocation or rebalance their portfolio⁴ – and nearly half have increased their contributions to their retirement funds⁵,” Moslander added.

Earlier this year, TIAA-CREF introduced an expanded portfolio of advice and planning resources for plan sponsors and their participants, which includes an updated online resource center for clients, new online retirement planning tools, additional in-person advisory services and the enhancement of TIAA-CREF’s comprehensive financial education program, known as Financial Essentials.

TIAA-CREF has been offering personalized retirement plan financial advice since 2005 at no additional cost to individual clients.⁶ The company currently offers in-person financial services at more than 65 offices across the country, in addition to phone representatives who are licensed and trained to provide advice. These services provide individuals with a suggested asset class mix and specific investment recommendations, designed to improve their chances of successfully reaching their retirement income goals.

For more information, read the TIAA-CREF Financial Advice Survey Executive Summary.

Survey Methodology

The survey was conducted by KRC Research by phone among a national random sample of 1,006 adults age 18 years and older nationwide between July 11, 2012 and July 17, 2012. The margin of error for the entire sample is plus or minus 3.1 percentage points.

About TIAA-CREF

TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $495 billion in assets under management (as of 9/30/12) and is the leading provider of retirement services in the academic, research, medical and cultural fields.

TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.

The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. Past performance does not guarantee future results.

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References:

1.	TIAA-CREF participant survey (n= 2,376), advice = April through September 2011 vs. 2011 Retirement Confidence Survey Results by EBRI (March 2011); 68 percent for TC phone advice; 78 percent for TC wealth advice; vs. 13 percent general population according to EBRI.
2.	Based on TIAA-CREF proprietary research of participants in employer sponsored plans, 2010-2012. In 2010, the average annual contribution of premium paying participants who took advantage of our advice offering was $11,900 prior to the session and $13,700 after the session, representing an increase of 15 percent. Hypothetically, over a 30-year period, the additional accumulation at retirement will be $204,388. This assumes end-of-month contributions, 6 percent annual rate of return and 3 percent annual premium increase rate.
3.	Using an advice methodology from Ibbotson Associates, Inc.
4.	As reported in TIAA-CREF Advice Analytics Dashboard, 2011.
5.	As reported in TIAA-CREF Advice Analytics Dashboard, 2011.
6.	Pertains only to one-time Ibbotson advice provided to plan participants.