The Relationship Between Financial Planner Use and Holding a Retirement Saving Goal: A Propensity Score Matching Analysis
20 Pages Posted: 13 Aug 2018
Date Written: July 27, 2018
It has been well established in the literature that financial advice leads to informed decision making and improved financial outcomes. However, there is limited evidence regarding the link between financial planner use and attitudes towards retirement saving. As financial planners provide comprehensive advice for the long-term benefits of clients, their clients may become more aware of retirement saving as an important goal. We used data from the 2010 and 2013 Survey of Consumer Finances to examine the association between financial planner use and setting a retirement saving goal. We found that households who consulted a financial planner were more likely to report retirement as the motive for saving, even after we employed a propensity score matching technique to account for systematic differences between those who used and did not use financial planners. Our findings suggest that financial planners do help individuals achieve their long-term financial objectives by highlighting the importance of retirement planning. The use of other types of financial professionals was not positively associated with the likelihood of setting retirement as an important saving goal in our main model.
Keywords: Saving Goal, Retirement Savings, Financial Planner, Survey of Consumer Finances
JEL Classification: D12, D14, D91, E21
Suggested Citation: Suggested Citation