The Relationship Between Financial Planner Use and Holding a Retirement Saving Goal: A Propensity Score Matching Analysis

20 Pages Posted: 13 Aug 2018

See all articles by Kyoung Tae Kim

Kyoung Tae Kim

University of Alabama

Tae-Young Pak

University of Alabama

Su Hyun Shin

University of Alabama

Sherman D. Hanna

Ohio State University (OSU)

Multiple version iconThere are 2 versions of this paper

Date Written: July 27, 2018

Abstract

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

Kim, Kyoung Tae and Pak, Tae-Young and Shin, Su Hyun and Hanna, Sherman D., The Relationship Between Financial Planner Use and Holding a Retirement Saving Goal: A Propensity Score Matching Analysis (July 27, 2018). Financial Planning Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3221013

Kyoung Tae Kim

University of Alabama ( email )

312 Adams Hall
Tuscaloosa, AL 35487-0001
United States

Tae-Young Pak

University of Alabama ( email )

Tuscaloosa, AL 35487-0158
United States

Su Hyun Shin

University of Alabama ( email )

Tuscaloosa, AL 35487-0158
United States

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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