PNC recently completed an extensive study of the digital connections investors make to plan for and manage their retirement.
A brief summary of our findings is shared below to provide plan sponsors with important insights into how digital connections might help them respond to the evolving needs and changing expectations of individual investors.
Investors are Connected
The Connections Investors are Making…
On a daily or weekly basis:
At least once per month:
…And the Connections They Want
Five Key Insights for Plan Sponsors
Insight 1: Digital connections need to be relevant, and help improve investors’ financial lives
The digital connections investors desire are those that can help them better manage their investments and retirement. They need to be specific to their circumstances, and make interactions with advisers easier and more convenient.
Insight 2: Financial Advisers Are Highly Valued
Digital connections do not replace the personal touch or customized advice. In fact, 60% of investors would consider switching providers if their adviser was replaced by a robo-adviser, or they were moved to a call center.
Insight 3: Information is not Wisdom
One in ten said that they regretted a financial investment or retirement decision they made in the last year.
The prime culprit in making decisions more confusing was “news sources.” The most helpful source was their financial adviser (35%). Second most helpful was the investment provider’s website (31%).
Insight 4: The Overwhelmed Need Help
Information needs to be more carefully curated to facilitate education and understanding, especially to the overwhelmed, who are predominantly female (68%).
Insight 5: Stay Ahead of the Curve
Our research uncovered three distinct types of connectors: High Connectors, Moderate Connectors and Low Connectors. High Connectors (who tend to be younger) will come to dominate the workforce as Baby Boomers continue to retire.
These High Connectors will expect plan providers and advisers to offer guidance, content and tools that matter most to them.
To learn more, please read our latest whitepaper, Digital Trends in Retirement: What it Means for Investors and Plan Sponsors.
The material presented in this newsletter is of a general nature and does not constitute the provision by PNC of investment, legal, tax, or accounting advice to any person, or a recommendation to buy or sell any security or adopt any investment strategy. Opinions expressed herein are subject to change without notice. The information was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy.
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