ComparisonAdviser Survey Highlights Low Usage of Human Financial Advisors Among Investors

A recent survey by ComparisonAdviser reveals that only 9% of American investors use human financial advisors to manage their investments. The study aimed to explore the different ways people handle their investment strategies across various life stages, shedding light on when and why they might require professional assistance. The data reflects a larger trend towards self-managed investments or alternative advisory services such as robo-advisors.

The research found 47% of respondents manage their investments independently. Despite the low overall use of human advisors, the study indicates a preference for robo-advisors among younger investors, particularly those in their 30s, with 42% using such services compared to a mere 3% hiring human professionals. This preference is attributed to the affordability and user-friendliness of automated platforms, coupled with younger investors' comfort with technology.

Higher age groups showed a different trend. Among those in their 50s and older, there was a notable increase in the use of human financial advisors, with 11% of individuals in their 50s and 21% of those aged 60 and above opting for personal advisory services. According to ComparisonAdviser's study, the complexity of financial needs and familiarity with traditional advisory methods contribute significantly to this choice.

The findings suggest that although robo-advisors are popular for basic investment management among younger generations, human advisors remain relevant for more complex financial planning needs, especially as investors age. The survey underscores ongoing shifts in the investment management industry influenced by technological advancements and changing investor preferences.