Financial Advice and Retirement Savings
53 Pages Posted: 30 Jan 2023
Date Written: October 23, 2022
We use a unique dataset from a large retail bank to examine the impact of financial advice on personal retirement savings. We document that retirement-related financial advice is associated with an increase in tax-exempt retirement accounts and equity investments, both at the extensive as well as the intensive margin. Our analysis suggests a causal link. We find no evidence that advisors particularly help typically disadvantaged clients (female, poorer, less-educated). Additional investments into retirement accounts and equities primarily come from external sources and checking accounts. The bank also benefits from the provision of retirement-related financial advice.
Keywords: financial advice, retirement savings, stock market participation
JEL Classification: D14, E21, G11, G51, J32
Suggested Citation: Suggested Citation