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Advisors are likely to have client rolls chock full of folks that are married, partnered or widowed. That’s reasonable simply because data indicate a lot of people in the world check one of those three boxes.
So it’s not that advisors are explicitly dedicated to serving couples of widows, but it often feels that way. It also often feels like advisors and prospects that are single aren’t connecting to the extent they should. Neither party is too blame. After all, advisors may be overlooking single clients on the basis that married folks may have more assets by virtue of having two incomes. Likewise, some single folks may perceive advisors as a luxury reserve for married people.
Those views, particularly the ones held by unattached people, need to change for many of the same reasons married/partnered folks that aren’t working with advisors should consider “joining the club.” Among those reasons are ameliorating financial stress and the importance of accessing high-quality financial advice later in life.
Single Prospects Should Become Clients
There’s a preponderance of evidence supporting the notion that single folks that aren’t currently working with advisors should consider changing that.
“A recent Advisor Authority survey, powered by the Nationwide Retirement Institute®, found that more than a third of single investors (37%) say they experience more strain or financial hardship compared to their married or partnered peers. This number increases significantly for single investors under 50 years old (44%),” notes Nationwide.
Nationwide also points the obvious though important point that single people likely have access to just one income stream and they certainly don’t access to a partner’s income because, well, there isn’t a partner to speak of. That accentuates the retirement challenges some single people face and that’s just one example of why “singles” should evaluate “matrimony” with advisors. Unfortunately, many unattached people aren’t yet making that call.
“Our survey found that single investors are less likely to work with an advisor or financial professional (35%), compared to married or partnered investors (46%). This guidance gap may explain the differences in financial planning strategies used by single and partnered investors,” adds Nationwide.
Single People Face Retirement Woes
The phrase “retirement crisis” is frequently lobbed about in the financial services community and it’s an accurate description of the current state of affairs in this country. It also doesn’t discriminate on the basis of relationship status, inferring single people are just as susceptible to retirement planning and savings issues as are their attached peers.
Data bear that. As Nationwide observes, 34% of single people queried don’t have a retirement plan in place, well above the 27% of married people that said the same. Further cementing the notion that single people should work with advisors is the point that nearly half don’t have a strategy in place to mitigate the effects of market pullbacks. However, it’s not all doom-and-gloom.
“The good news is, it’s not too late for many single clients to put a plan in place to save more and invest for long-term growth. But they need guidance from financial professionals to help avoid a retirement savings shortfall,” concludes Nationwide.
Related: Why Low Volatility Might Be the Most Overlooked (and Underrated) Investment Factor