Financial advisors may need to help younger retirement savers get on track as many are feeling unprepared for retirement while turning to social media for help, according to a recent survey.
Thirty-eight percent of millennials and 30% of Generation Z feel underprepared for retirement, the National Association of Personal Financial Advisors said it found in a recent survey.
Moreover, one in six respondents believe they’ve “screwed up” their retirement — and more than 16% believe they did so by “listening to unqualified financial advice,” according to the survey. For millennials in particular, the problems appears to be acute: 57% have considered doing a side gig to boost their retirement savings, Napfa found.
At the same time, 39% of Americans under 65 get their financial advice online or from social media, with more than a quarter of Gen Z respondents getting their financial advice from social media alone, according to the survey.
Moreover, 63% of Gen Z and 71% of millennials, for example, turn to YouTube “to discuss financial planning,” Napfa says. And 56% of Gen Z use TikTok for financial planning, according to the survey.
And those channels can lead to actual actions: more than 60% of respondents who say they receive their financial planning information online also say they’ve acted on that advice, Napfa says.
Geoffrey Brown, chief executive officer of Napfa, said younger Americans turning to social media is a “good thing” if it can “pique their interest” in saving for retirement.
“However, it’s important to note that advice found online isn’t personalized or tailored to individual goals and needs, leading to potentially greater risk-taking, consumer harm, and a piecemeal approach,” he said in a statement.
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