• Basic Membership Access to Journal, Shadow Stock portfolio & monthly updates for stock screens
  • A+ Investor Full access to AAII.com, Journal, and a power data suite for investment ideas
  • AAII Platinum Full access to all of AAII's model portfolios and premium services at a significant discount
  • Dividend Investing Newsletter and model portfolio that focuses on dividend growth
  • AAII Growth Investing Find secular growth stocks poised for outperformance regardless of macroeconomic conditions.
  • Retirement Investing Discover trusted strategies for every stage of retirement. Get actionable insights and resources for smart retirement planning.
  • Sentiment Investing A research-driven newsletter with 10+ signals decoding sentiment across retail and institutional behavior.
  • Stock Superstars Report Get stock ideas inspired by the market's leading professionals
  • VMQ Stocks For the value investor looking to harness academic research in an actively managed portfolio
  • Bits and Bips Newsletter delivering insights on linking traditional finance, macro trends and cryptocurrency opportunities to help investors build stronger, more diversified portfolios.
All premium products come with free basic membership.
Explore All Membership Options
Join Now
Advisers Dispatches Retirement Planning

Adviser Communication Gaps Can Lead to Inadequate Retirement Preparation

A research study reveals a disconnect between financial advisers and their clients on whether important retirement discussions are held.

by Tudor Pop | February 2025

A research study reveals a disconnect between financial advisers and their clients on whether important retirement discussions are held.

The study examined the perceptions of both financial advisers and clients concerning seven essential retirement planning issues. Data was gathered through surveys or interviews with a sample of advisers and their clients. The analysis compared which of the seven topics advisers said they discussed with their clients to which topics clients believed were covered in the same meetings.

Advisers most often said they discussed required minimum distribution (RMD) planning, retirement lifestyles, protected income, tax minimization, income planning, budgeting and withdrawal strategies. However, many of the advisers’ clients felt that these particular issues were either not discussed at all or were given inadequate attention. The discrepancy between advisers’ perceptions and clients’ experiences suggests a lack of effective communication.

Based on these findings, the researchers concluded that financial advisers may not be effectively addressing the full range of retirement planning topics, leading to misaligned expectations and insufficient retirement preparation. The study recommends better communication between advisers and clients for more thorough and effective retirement planning, ensuring that clients are better prepared for the future.

The study’s conclusions emphasize the importance of transparent, detailed discussions between advisers and customers that cover all aspects of retirement planning. Investors should actively engage in conversations with their advisers and advocate for addressing all key topics, especially less-understood subjects. Advisers, on the other hand, can reassess their approach to ensure they are covering every critical issue in a way that better meets their clients’ needs. By aligning expectations and improving communication, both parties can work together to achieve more successful retirement outcomes.

Source: “Blanchett: Advisors Say They Discuss These 7 Retirement Issues. Clients Disagree,” by John Manganaro; ALM Global Think Advisor, October 8, 2024.

Discussion

BARRY J from TX posted over 1 year ago:

Tudor, #1 Thanks for providing us this "research." #2 I don't watch our new Secretary of Education, Linda McMahon’s TV WrestleMania productions. They are too obviously choreographed BUT even a low-brow organization like that CONTINUOUSLY IMPROVES their products to EXCEED their clients’ needs, expectations, satisfaction, and LOYALTY ... and, as a result, those muscle-bound folks make a lot more money than brainiac FAs do. I am not uncertain that she really knows how to improve organizational performance. Ugh! Body slam. #3 But I do like read about FAs getting clothes-lined, drop-kicked, choked, and eye-gouged for weak performances. I so enjoy articles – supported by really weak research techniques or not -- that expose the gaps, gaffs, and greediness of certified FAs. Flying body slam from the top rope! Ouch! #4 The gaps in the 7 communications described cannot be closed because of common and shared deficiencies in the research and in both parties. I suspect that some of the data points NOT gathered that might have be important to IMPROVE this PROCESS are (1) neither party prepared in advance for the meeting, (2) they never agreed on an agenda; (3) if an agenda is provided, no one remembered it (big clue), (3) attention might be selective; clients were not asked to rate the importance of the agenda items in advance and afterwards to compare changes before and after; etc. #5 Summary, a very sloppily planned and executed process, where the FAs CHARGED FEES for their “professional” services and the clients came away with a 28% lower opinion of the services provided. #6 Net: the data shows that clients paid 28% MORE than they realized for 23% LESS satisfaction. Kazam! Gory Special hold. #7 And the FAs who used this survey left an impression with clients that they were going to improve their service delivery process. Zowie! Tongan death Grip. I am pounding the mat. I give up.


You need to log in as a registered AAII user before commenting.
Create an account

Log In

Get your free copy of our special report analyzing the tech stocks most likely to outperform the market.
Download the FREE Report Here: