Advisors & Outcomes
Financial Advisors Can Help All Groups, Especially Communities of Color
The 2023 Retirement Income Literacy Study establishes a compelling link between retirement literacy and advisor relationships. On average, respondents who work with financial advisors have significantly higher financial literacy scores than those who don’t. Overall, the advisor relationship correlates to an 11-point boost in results.
However, the calculus of working with a financial advisor is often different for white and non-white communities. Previous research – including the American College Center for Economic Empowerment and Equality’s Black Women, Trust, and Financial Services study (2021) and it the American College Cary M. Maguire Center for Ethics in Financial Services’ Trust and Financial Services study (2022) – demonstrates that communities of color tend to be less trusting of financial institutions and less likely to want to get involved with them in an advisory relationship.
This bears out among our 2023 respondents: while white respondents were most likely to say they had ongoing relationships with financial advisors (37%), non-white communities were significantly less likely to say the same – especially Black respondents (22%).
If the financial services industry wants to begin to address the lack of retirement planning knowledge, or even general financial knowledge, prevalent in diverse communities, they must also seek to make new inroads with these communities and build the bridges of trust necessary to foster ongoing relationships.
Resources Centered on Retirement Income
The American College Center for Retirement Income is committed to raising knowledge about the issues and concepts facing Americans’ retirement. In addition to the Retirement Income Literacy Study, the Center publishes insights and research, leads in-person and live events, and creates educational curriculum to support financial professionals and benefit society.
We encourage you to meet the team, explore more retirement research, and get involved.
Education for Retirement Professionals
The Retirement Income Certified Professional® (RICP®) Program equips financial professionals with the skills to build sustainable and holistic retirement income plans using a depth of knowledge that covers every strategy and income style.
Consider whether this program might be right for you—and expand your opportunities as a retirement professional.
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