Americans Who Do This Have Saved Twice as Much for Retirement Than Those You Don’t

A financial advisor is a professional who helps individuals and families manage their money and grow their wealth by offering guidance on a variety of financial topics. They help with investments, retirement planning, taxes, budgeting, insurance, and long-term financial goals. A good financial advisor assesses your current financial situation, helps you create a personalized strategy, and adjusts that plan as your life changes. These experts are not just for wealthy individuals; they meet you where you’re at in life, whether you’re just starting your career, saving for retirement, buying a home, preparing for college expenses, or navigating major life events. The benefits of hiring a financial advisor include gaining expert insight, avoiding costly mistakes, staying disciplined during market fluctuations, and having a clear idea of your financial future. For many people, an advisor also provides peace of mind and accountability, making complex money-related decisions more manageable.

Economic conditions for Americans over the last four years have been challenging, to say the least. Inflation, struggling small business and employment rates, higher taxes, and a litany of other problems have become major issues for the bulk of Americans. 

Northwestern Mutual conducts an annual survey, The Planning and Progress Study, that explores the attitudes, behaviors, and decisions made of Americans from the elderly and Boomer generations, all the way to Gen-Z. The 2024 study revealed some surprises, especially from Gen-Z. 

There was a consensus across the board from Americans in their 20s to their 80s on several issues. A majority held the following concurring concerns:

• Chances of Recession 
• Increase in Inflation
• A slowdown in household income
• Inflation blocking financial security
• Less discretionary spending power

This post was updated on November 29, 2025 to clarify the role of a financial advisor and the variety of finance-related categories they can help with.

The Advantages of a Financial Advisor

Americans who had hired a financial advisor averaged $132,000 in savings vs. $62,000 for those who did not hire one.

The most significant difference among respondents was between those who had hired a Financial Advisor versus those who did not.  Some of these behavior gaps included:

Gen-Z: Financially Smarter Than They Appear

Despite the stereotypes of their frivolity and idleness, Gen-Z respondents first sought a financial advisor by age 29 on average, vs. age 49 for Boomers.

Perhaps the most startling and unexpected statistics came from Gen-Z respondents. Although stereotypically perceived as frivolous, lazy, and spoiled, they demonstrate evidence of being more financially prescient than most of their elders. For example:

• Average age for seeking financial advice was 38, but for Gen-Z, it was 29. For Boomers, it was 49.
• Gen-Z had the strongest trust level for family member financial advice – 29%, vs. the 16% mean.

African-Americans Displayed the Widest Gains

76% of African Americans receiving financial advice had established an emergency fund, vs. 36% who had not received the advice.

While the overall majority of Americans statistically appear to benefit from a Financial Advisor, African Americans reportedly gained the most, among all other sub-categories.  

Takeaways and Suggestions

Families who choose a Financial Advisor prudently can greatly benefit from sound counsel on the options available to meet their financial goals.

With all of the financial pressures faced by everyday Americans, the objective perspective of a Financial Advisor can prove to be invaluable. The caution that one seeking a Financial Advisor needs to bear in mind is for any potential conflicts of interest that may color the advisor’s guidance. If the strategy is to plan for an estate to grow safely and meet established goals to address specific contingencies, then some tips that come to mind from personal experience include:

• Avoid an advisor whose compensation comes from transactional commissions, which can encourage “churning” and unnecessary trade activity. An advisor whose firm charges a flat “wrap fee” annual percentage has a greater incentive to grow your account over the long haul.
• Include liquidity requirements into the equation early in the process so that any emergency funds can be easily disencumbered for rapid deployment. Some long term investments, depending on the type, may contain penalties for early withdrawal or liquidation, which will erode Return on Investment (ROI).   
• Make sure that the Financial Advisor is appraised of any changes in your financial condition ASAP, so that appropriate measures can be taken to address tax brackets, liquidity needs, ROI needs, etc.
• A Financial Advisor should rarely, if ever, be given even a limited Power of Attorney on your account, as their job is to advise, but let the client make the ultimate decision.

This article and the opinions expressed are meant to be for informational purposes only, and are not intended to serve as tax or financial advice. A professional accountant or financial advisor should be consulted if that type of advice is being sought.