Survey of Widows and Widowers Topline Report - The American College … · 2017-07-13 · Survey of...

Greenwald&Associates

Survey of Widows and Widowers Topline Report

Prepared for: The American College State Farm Center for Women and Financial Services

July 2016


Table of Contents

1

Introduction and Methodology 2 Key Findings 3 Financial Goals, Concerns, and Lessons Learned 7 Past and Present Use of Financial Advisors 18 Reasons for Advisor Changes after Spouse’s Death 31 Current and Desired Services 44 Financial Decision-Making 51 Profile of Respondents 55


Introduction and Methodology

2

Introduction The purpose of this study was to examine the extent to which recent widow(er)s chose to stay with their financial advisor after their spouse’s death, chose to work with a new advisor, or chose to not work with an advisor at all. We also wanted to determine the reasons behind their decision to keep, drop, or switch advisors. More specifically, we aimed to examine widow(er)s’ financial attitudes and risk tolerance, their use of financial advisors in the past, and the relationship with their advisor at the time of their spouse’s death. Methodology Widows and widowers from Research Now’s panel completed a 19-minute online survey between May 17 and June 13, 2016. Out of the 1,207 respondents, 919 are widows and 288 are widowers. Widow(er)s were required to have lost their spouse within the past 20 years, be between 40 and 79 years of age, and have investable assets of at least $75,000. To examine differences between those who work with a professional financial advisor or not, we set flexible quotas and achieved 55% of widow(er)s who currently work with an advisor and 45% who do not. We also established flexible quotas by age in order to achieve a large enough sample of younger widow(er)s to analyze. Six percent of widow(er)s are in their 40s, 20% are in their 50s, 32% are in their 60s, and 42% are in their 70s. Data were weighted according to age, gender, and investable assets.


KEY FINDINGS

3


Key Findings

4

Nearly half of widows leave their advisor. Forty-six percent of widows leave their advisor after their spouse dies, including 35% who switch to a new advisor and 11% who drop the advisor and become unadvised as widows. This leaves 55% who remain with the same advisor after their husband’s death. Men who become widowers, however, are more likely than women to keep their advisor. Two-thirds keep their advisor, while only a third switch or drop. The reasons why fifty-five percent of widows continued working with the same advisor even after their spouse’s death are because they already trusted and relied on their advisor, and they were satisfied with their advisors’ performance. More widows than widowers kept their advisor because their advisor takes the time to explain and educate them about their financial options. Interestingly, leaving the advisor is not always the widow(er)s’ choice. Among the third of widows who switch advisors, nearly three in ten were forced to do so because their previous advisor was retiring or moving. Among the one in ten widows who dropped their advisor after their spouse passed, more than four in ten did so because they felt they no longer needed him or her or felt they could handle their finances on their own. In fact, four in ten widow(er)s say a major factor in switching or dropping their advisor was that they thought they could do better on their own or with someone else. Widows, in particular, say they left or dropped their previous advisor because they felt their advisor was not helpful after their spouse died (21% vs. 8% of widowers). Therefore, it is important for advisors to be attentive and helpful when one of their clients loses a spouse. On the other hand, half of widows who did not have an advisor while their spouse was alive started working with a new advisor after their spouse died, compared with only a quarter of widowers. The reasons behind why widows started working with an advisor following their spouse’s death is the realization that they need their assets and investments professionally managed, and they need professional advice.


Key Findings (continued)

5

Advised widows and widowers are satisfied with their advisor and the services they receive. An overwhelming majority are satisfied with their primary financial advisor, trust him or her, and most would recommend their advisor to a friend or relative. Advisors are primarily assisting widow(er)s with investments, financial planning, retirement and retirement income planning. Three in ten are receiving advice on tax planning. Only 18% are getting advice on health and long-term care, which is notable since it’s an ongoing concern for widow(er)s. Still, widow(er)s are getting what they need from their advisors. Very few feel they could use greater or expanded services than what their advisor already provides. Advisors should keep in mind the different approaches and needs of women and men who have lost a spouse. Widows tend to be “do it with me” or “do it for me” investors (34% and 27%, respectively), whereas widowers are more likely to be “do it yourself” investors (40%). In addition, widows tend to have a lower risk tolerance than widowers.


Key Findings (continued)

6

Widows worry about having enough money and long-term care, but few faced financial hardship after their spouse passed. It is a misconception that losing one’s spouse always leads to worse financial situations. In this study of widow(er)s with at least $75,000, we found that widows tend to be in decent financial shape after their spouse dies. The reasons for their increased or at least stable asset levels appear to be largely due to the payouts they receive from their spouse’s life insurance and pension plans. Few are worried about their ability to pay for everyday bills and expenses or expect they will have to work in retirement. In the long run, however, widow(er)s express concern about things such as having enough money to last throughout their lifetime or about being able to afford nursing home or long-term care. Widows are more concerned than widowers about their ability to stay in their home as they age. Widows are less likely than widowers to say they are financially secure, knowledgeable about savings and investment issues, confident about their ability to live comfortably in retirement, and have a plan for income in retirement. Yet, widows financial acumen grows out of necessity after they lose their husbands.

Financial responsibility shifts when a spouse dies. Widows’ advice to others who may one day face the loss of their spouse is to become more aware and knowledgeable about financial matters. This is consistent with the finding that widows had to take on more financial responsibility than did widowers when their spouse died. Widows were, for the most part, still largely involved in their finances when their spouse was alive, but the burden of that responsibility shifted entirely to their shoulders when their spouse passed.


FINANCIAL GOALS, CONCERNS, AND LESSONS LEARNED

7


Half of widows and widowers report that maintaining their lifestyle in retirement is a top financial goal.

7%

3%

1%

3%

7%

15%

16%

16%

17%

21%

21%

25%

28%

35%

78%

None of these/No others

Other

Obtaining or reviewing life insurance coverage

Saving for or purchasing a home

Saving for a child's education

Developing a will or estate plan

Planning for long term care

Paying down debt

Paying off/paying down your mortgage

Save for or purchase another big ticket item

Paying for healthcare/health expenses

Saving for a rainy day/emergencies

Saving for retirement

Keeping up with everyday bills and expenses

Maintaining your lifestyle in retirement

8

What are your top three financial goals today? Please select three. Total (n=1,207)

Which of these is your most important financial goal? Total (n=1,183)

65% are retired

5%

7%

7%

11%

52%

Paying off/paying down yourmortgage

Paying down debt

Keeping up with everyday bills andexpenses

Saving for retirement

Maintaining your lifestyle inretirement

Which of these is your most important financial goal? Top Financial Goals


Widow(er)s are most concerned about having enough money to last throughout their lifetime and affording nursing home/long-term care.

9 How concerned are you about the following finance-related issues today?

Total (n=1,207) Note: Don’t know/NA removed.

Widows are more concerned than widowers about their ability to stay in their home as they age (23% vs. 14% extremely/very concerned).

6%

9%

13%

15%

15%

16%

21%

21%

24%

26%

15%

20%

19%

33%

29%

26%

31%

36%

38%

33%

79%

71%

68%

52%

56%

59%

48%

43%

38%

41%

Your ability to pay for a child or grandchild's education

Your ability to pay for everyday bills and expenses

Your ability to leave an inheritance to your children or heirs

Who will help you manage your finances if you becomeunable

Your ability to make prudent financial and investmentdecisions on your own

Your ability to save for retirement

Your ability to stay in your home as you age

Who will take care of you in old age

Being able to afford nursing home or long-term care if youneed it

Having enough money to last throughout your lifetime

Extremely/Very concerned Somewhat concerned Not too/Not at all concerned


When their spouse passed, widows concerns were the same as they are today.

10 Thinking back to the time just after your spouse’s death, how concerned were you then with the following?

Total (n=1,207); Widows (n=919); Widowers (n=288) Note: Don’t know/NA removed.

Just after their spouse’s death, widows were more concerned than widowers about their ability to stay in their home as they age, having enough money to last throughout their lifetime, and their ability to pay everyday bills and expenses.

12% 22%

19%

18% 21% 20%

19% 21% 20%

17% 25%

23%

18% 32%

28%

18% 24%

22%

17% 30%

26%

28% 30%

30%

19% 24%

22%

29% 31%

30%

70% 54%

59%

66% 49%

54%

53% 49% 50%

64% 51%

55%

53% 37%

41%

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total


Having enough money to last throughout your lifetime

Your ability to stay in your home as you age

Being able to afford nursing home or long-term care if you need it

Your ability to save for retirement

Your ability to pay for everyday bills and expenses


At the time of their spouse’s death, about half were concerned about their ability to make financial decisions and who would help manage their finances.

11 Thinking back to the time just after your spouse’s death, how concerned were you then with the following?


Widows were more concerned about their ability to make prudent financial decisions than widowers.

9% 12% 11%

12% 11% 12%

10% 20%

17%

13% 22%

19%

14% 20%

18%

14% 21%

19%

14% 14% 14%

18% 28%

25%

31% 30%

30%

35% 26% 28%

77% 66%

70%

74% 74% 74%

72% 52%

58%

55% 48%

50%

51% 55% 53%

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total


Who will help you manage your finances if you become unable

Who will take care of you in old age

Your ability to make prudent

financial and investment decisions on your own

Your ability to pay for a child or grandchild's education

Your ability to leave an inheritance

to your children or heirs


Today, nearly seven in ten say they are financially secure and feel confident that they will be able to live comfortably throughout retirement.

25% 33%

30%

68% 53%

58%

75% 54%

60%

77% 63%

67%

74% 66% 68%

22% 22%

22%

22% 22%

22%

19% 34%

30%

20% 25%

23%

20% 22%

21%

48% 42%

44%

4% 18%

14%

5% 11% 10%

3% 12%

9%

6% 12% 10%

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total

Net: Strongly agree (5-4) 3 Net: Strongly disagree (2-1)

12 How strongly do you agree or disagree with each of the following?

Total (n=1,207); Widows (n=919); Widowers (n=288)

I am financially secure

I am confident in my ability to live

comfortably throughout my retirement

I am knowledgeable about saving

and investment issues

I have a plan for how to turn my

savings and investments into income for retirement

I am concerned about being a

burden to my family as I age

Widows are less likely than widowers to say that they are financially secure, knowledgeable about saving and investment issues, confident about their ability to live comfortably in retirement, and have a plan for income in retirement.


About half of widow(er)s saw their total investable assets grow since their spouse’s death.

13

Compared to before your spouse’s death, would you estimate your total investable assets are…? Did your spouse have any of the following financial products that paid you benefits after your spouse’s death?


12%

37%

51%

11%

36%

52%

12%

40%

48%

Lower thanwhen spouse

was alive

Similar Higher thanwhen spouse

was alive

Life insurance and DB plan payouts were the primary protective driver behind the growth or stability of widow(er)s’ asset levels. Pension or DB plans were a greater benefit to widows than widowers.

Asset Level

21%

6%

27%

70%

19%

16%

49%

65%

20%

13%

43%

67%

None of these

An annuity

A pension or DB plan

Life insurance

TotalWidowsWidowers

Funds Received


Very few faced significant financial hardships after their spouse passed.

14 Thinking back to the time of your spouse’s passing, how strongly would you agree or disagree with the following?


At the time of their spouse’s passing, widows were also more likely to ask family and friends for financial guidance and advice.

4% 3%

7% 5%

13% 9%

4% 15%

11%

5% 15%

12%

12% 10%

11%

12% 13%

12%

6% 6%

6%

7% 9%

9%

96% 94% 95%

86% 83% 84%

86% 75%

78%

90% 80%

83%

88% 76%

80%

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total

WidowersWidows

Total


My retirement plans changed and I needed to delay my retirement

I had to go back to work for financial reasons

I asked my family for financial

guidance or advice

I asked my friends for financial guidance or advice

I had to rely on my family for financial assistance


Four in ten widows became more knowledgeable about their finances after their spouse died.

1%

66%

32%

3%

54%

43%

Less knowledgeable

About the same

More knowledgeable

Widows Widowers

15

How does your current level of financial knowledge compare with how knowledgeable you felt before your spouse passed away?

Widows(n=919); Widowers (n=288) Which of the following are reasons why you are now more financially knowledgeable than you were before

your spouse passed away? Total (n=503)

Significantly more widows than widowers increased their financial knowledge after their spouse passed. The reasons widow(ers) became more knowledgeable after their spouse’s death are that they have taught themselves more about financial planning and widows in particular became more involved in financial decisions.

6%

27%

39%

42%

60%

Some other reason

I communicate with my financialadvisor more frequently

I have a good relationship withmy financial advisor

I am more involved with financialdecisions

I have taught myself or beentaught about financial planning

Reason for Increased Financial Knowledge


Widow(er)s’ advice is to be more knowledgeable about financial matters, have finances in order, be prepared, and buy life insurance.

5% 9%

14% 1% 1% 1% 1% 1% 1% 1% 1%

2% 3%

4% 4% 4% 4%

5% 6% 6%

8% 8% 8%

15%

Refused/Don't Know/NAOtherNone

Don't trust othersLearn about Social Security options

Understand taxesKnow passwords to accounts

There will be loss of incomeBe ready to take care of yourself

Have a trustExpect the unexpected

CommunicateBe careful with spending/keep expenses to a minimum

Get professional help, especially financialSave (more)

Be involved/informedDon't make any major changes too quickly

Have a (updated) willHave a plan

Get paperwork in order/keep good recordsBuy insurance, particularly life

Be preparedGet finances in order

Be aware/knowledgeable about financial matters

16 What are some of the financial lessons you learned from losing your spouse that you like to

share with others so that they may be better prepared? Total (n=1,207)

Widows, in particular, are more likely to say that they wish they had been more aware or knowledgeable about financial matters before their spouse died (20% vs. 4% of widowers).

“Both partners need to been involved and knowledgeable about the home financial position and workings, from the every day to planning for the future.” -Widow

“Make sure you are conversant with all aspects of your financial situation, as life can change in an instant. Know where everything is, what everything is worth, and become comfortable dealing with money issues.” -Widow


Nearly half of widows and three in ten widowers asked a professional for financial guidance at the time of their spouse’s passing.

17 Thinking back to the time of your spouse’s passing, how strongly would you agree or disagree with the following?

Total (n=1,207); Widows(n=919); Widowers (n=288) Note: Don’t know/NA removed.

At the time of their spouse’s passing, widows were more likely than widowers to change their retirement plans, ask a financial professional for advice, ask family for financial guidance, delay making any big financial decisions, and have to go back to work. Widows were also more likely than widowers to say the process of managing their finances was more difficult than expected.

8%

16%

14%

21%

36%

32%

30%

47%

42%

12%

17%

15%

21%

23%

22%

16%

17%

17%

80%

67%

71%

58%

41%

46%

55%

36%

41%

Widowers

Widows

Total

Widowers

Widows

Total

Widowers

Widows

Total


I asked professionals for financial guidance or advice

I did not want to make any big

financial decisions

The process of managing my money and finances was harder than I

thought it would be


PAST AND PRESENT USE OF FINANCIAL ADVISORS

18


Prior to their spouse’s passing, widow(er)s used financial advisors/planners, investment advisors/stock brokers, and accountants.

3%

26%

30%

36%

37%

41%

2%

7%

9%

15%

21%

33%

Other

Estate attorney

Insurance agent/broker

Accountant

Investment advisor or stock broker

Financial advisor or planner Primary

Used

19

Prior to your spouse’s passing, which of the following types of financial professionals did you and your spouse work with? Total (n=1,207)

Which of these financial professionals did you and your spouse consider to be your primary financial advisor? Used a financial advisor prior to spouse’s passing: Total (n=977)

Widows are more likely than widowers to say their accountant was their primary financial advisor (18% vs. 8%).

70% had a primary financial advisor prior to their spouse’s death.


Nearly seven in ten say they played a role in choosing their primary financial advisor, while a quarter say their spouse selected their advisor.

6%

10%

35%

49%

8%

23%

40%

28%

8%

20%

38%

34%

Don't know/Don't recall

Your spouse did

You chose equally

You did

TotalWidowsWidowers

20

Who selected the primary financial advisor you and your spouse worked with? Used a primary financial advisor prior to spouse’s passing: Total (n=858); Widows (n=655); Widowers (n=203);

Who Chose the Advisor


Widows indicate they had a strong relationship with their advisor, while a quarter say their husband had the strongest relationship.

5%

3%

25%

67%

5%

26%

37%

31%

5%

20%

34%

42%


Mainly your spouse

Both of you equally

Mainly you

TotalWidowsWidowers

21

While your spouse was alive, who had the strongest relationship with your primary financial advisor? Used a primary financial advisor prior to spouse’s passing: Total (n=858); Widows (n=655) ; Widowers (n=203)

Had you ever spoken with or met your advisor prior to your spouse’s passing? Had a primary financial advisor prior to spouse’s passing: (n=858)

Widowers are far more likely to claim they had the strongest relationship, and only 3% say their spouse did.

Who Had the Strongest Relationship with Advisor 73% of widow(er)s had spoken to or met with their primary financial advisor prior to their spouse’s passing.


Around seven in ten widow(er)s agree that their financial advisor understood their financial goals prior to their spouse’s passing.

22

To what extent do you agree or disagree with the following statements about the primary financial advisor you and your spouse worked with?

Had a primary financial advisor prior to spouse’s passing: (n=858) Note: Don’t know/NA removed.

66%

69%

18%

18%

16%

13%

The advisor always made sure you knewwhat was going on

The advisor understood both your and yourspouse's financial goals and concerns



Fewer than four in ten worked with their advisor to develop a plan in the event that they or their spouse were to die.

23

While your spouse was alive, did you or your spouse work with your advisor to develop a plan in the event either one of you became a widow(er)? Had a primary financial advisor prior to spouse’s passing: (n=858)

36%

55%

9%

39%

57%

3%

Yes No Not sure

WidowsWidowers

Developed a Plan with Advisor in the Event Spouse Died


The majority of widows and widowers knew how to contact their advisor after their spouse passed.

3%

0%

3%

24%

70%

4%

4%

27%

65%

4%

1%

4%

28%

63%


No: I didn't know how to contact them, but Iwanted to

No: I didn't know how to contact them, but I alsodidn't need/want to

Yes: I knew how, but I did not need/want tocontact them

Yes: I knew how and I wanted to contact them

Total Widows Widowers

<0.5%

24

Did you know how to contact your advisor after your spouse has passed away? Had a primary financial advisor prior to spouse’s passing: Total (n=858); Widows

(n=655); Widowers (n=203)


More than six in ten widow(er)s agree that their financial advisor was helpful when their spouse died.

25

To what extent do you agree or disagree with the following statements about the primary financial advisor you and your spouse worked with?

Had a primary financial advisor prior to spouse’s passing: Total (n=858); Widows (n=655); Widowers (n=203) Note: Don’t know/NA removed.

64%

67%

66%

21%

13%

15%

15%

20%

18%

Widowers

Widows

Total


The advisor was helpful to you when your spouse died

It is important for advisors to be helpful after their client’s spouse dies. Widow(er)s who switched advisors are less likely to say their advisor was helpful when their spouse died (39%) compared with those who kept their advisor (76%).


Among widow(er)s who currently work with a financial professional, the majority consider their financial advisor/planner to be their primary advisor.

2%

23%

26%

35%

37%

49%

1%

6%

4%

11%

25%

45%

Other (specify)

Insurance agent/broker

Estate attorney

Accountant

Investment advisor/stock broker

Financial advisor or planner

Primary

Used

26

And which of the following financial professionals do you work with currently? Total (n=1,207)

Which of these financial professionals do you consider to be your primary financial advisor? If works with any financial professionals: (n=1,011)

Fifty-five percent currently have a primary financial advisor, a drop from 70% who worked with one prior to their spouse passing.


The majority of widow(er)s have been working with their primary financial advisor for more than five years.

27 How long have you been working with your current primary financial advisor?

Currently has a primary financial advisor: (n=937)

6%

16% 14% 20%

42%

2%

1 year or less 2 to 3 years 4 to 5 years 6 to 9 years 10 years orlonger

Don'tknow/Don't

recall

62% have worked with their financial advisor 6+ years


Half of widow(er)s found their current primary advisor through a referral from a family member, friend, or business associate.

24%

1%

3%

4%

6%

12%

23%

27%

Other

Your current spouse/partner works with them

Found online

One of your children referred you

Saw an advertisement

Walked into a local office

Is a family member or friend

A referral through a business associate

A referral through another family member or friend

28 To the best of your recollection, how did you [and your spouse] find your primary financial advisor?


<0.5%

How Found Current Financial Advisor


Widow(er)s’ contact with their financial advisor increased after their spouse died.

29

How frequently did you personally speak to or meet with your advisor while your spouse was alive? Used a primary financial advisor prior to spouse’s passing and met with/spoke to advisor: (n=640)

How frequently do you communicate with your advisor currently? Currently has an advisor: (n=937)

8%

20%

32% 28%

6% 3% 3%

14%

36%

28%

14%

3% 4% 1%

At least oncea month

About fourtimes per

year

About twicea year

Once a year Less oftenthan onceper year

Almost never Don'tknow/Don't

recall

Prior Contact

Current Contact

Frequency of Communication with Advisor Before and After Spouse’s Death


Widow(er)s tend to trust their current advisor.

1%

9%

32%

57%

Disagree/StronglyDisagree

Neither agree nordisagree

Agree

Strongly agree

Trust for Current Advisor

30

To what extent do you agree or disagree that you can trust your financial advisor? Currently has an advisor: (n=937)

Do you trust your financial advisor more or less than you did prior to your spouse’s passing? Continued working with advisor after spouse died: (n=519)

3%

85%

7%

5%

Trust advisor a little or a lotless

Trust advisor about the sameas before

Trust advisor a little more

Trust advisor a lot more

Change in Trust Levels if Kept Advisor after Spouse Died


REASONS FOR ADVISOR CHANGES AFTER SPOUSE’S DEATH

31


Forty-six percent of widows left their advisor when their spouse died.

Had an Advisor when Spouse Died


Kept advisor 58% 55% 66%

Switched to a different advisor

31% 35% 22%

Dropped advisor 11% 11% 12%

32 Had primary advisor before spouse died: Total (n=858); Widowers (n=203); Widows (n=655)

No prior advisor: Total (n=349); Widowers (n=85); Widows (n=264)

No Previous Advisor when Spouse Died


Started with new advisor

41% 48% 25%

Stayed unadvised 59% 52% 75%

Among those who did not have a prior advisor, widows are more likely to start working with an advisor following their spouse’s death than are widowers.


A strong relationship built on trust and satisfaction with performance are the main reasons why widows choose to keep their advisor.

33 Why did you decide to maintain your relationship with your financial advisor after your

spouse’s death? Continued working with same advisor after spouse died: Widows (n=374); Widowers (n=145)

Reasons Kept Working with Advisor

1%

24%

4%

3%

7%

14%

8%

25%

25%

1%

13%

1%

4%

10%

11%

14%

24%

45%

Does not apply/Refused/Don't know

Other

Continuity/consistency of service

Have confidence/comfortable in their ability

Understands my needs/goals

No reason to change

Has good advice/knowledge

Satisfied: providing good results, doing well, helpful

Established a trusted, reliable relationshipWidows

Widowers

“Mostly, I stayed with [Advisor] because I chose her for the right reasons, like her work, enjoy her company, and have had a good experience with her.” –Widow

“Very knowledgeable and has been excellent with [my] investments.” -Widow

“I had worked with her for more than twenty years and we have a wonderful relationship.” -Widow


Widow(er)s kept their advisor after their spouse died when they had a good relationship and the advisor was knowledgeable, understanding, and responsive.

34

Were the following major factors, minor factors, or not factors in your decision to continue using the same primary financial advisor?

Continued working with advisor after spouse died: (n=519)

More widows than widowers say it was a major factor in their decision to continue working with their advisor because he or she took the time to explain or educate them about their financial options (78% vs. 60% of widowers).

6%

9%

12%

24%

33%

44%

52%

72%

78%

83%

88%

90%

13%

16%

19%

18%

34%

30%

24%

20%

15%

11%

8%

7%

81%

74%

69%

58%

33%

26%

23%

8%

7%

6%

4%

3%

I don't know where else to go

Focuses on working with women (widows n=374)

Works with other widows/widowers

Changing advisors seemed too difficult/like too much work

Is conveniently located

Is fairly priced

Was helpful after my spouse passed away

Takes the time to explain or educate me on my financial options

Is available to me when I need them

Understands me and my circumstances best

Is knowledgeable about financial planning and investing

I have a good, established relationship

Major factor Minor factor Not a factor

Reasons for Keeping Advisor


Many who switched advisors had to because their previous advisor retired or moved.

35 Why did you decide to switch to a new/different financial advisor after your spouse’s death?

Switched to a new advisor after spouse died: Widows (n=221); Widowers (n=34*) *Small n size. Please use caution in interpreting these results.

Reasons for Switching Advisors

0%

22%

0%

1%

1%

7%

1%

10%

0%

12%

21%

6%

20%

1%

14%

3%

4%

4%

4%

4%

5%

6%

10%

12%

16%

18%

Don't know

Other

New advisor was recommended

Previous relationship with new advisor

Need someone trustworthy/understood my needs

Need a fresh start/change

Did not have a previous advisor

Needed one who was more knowledgeable

New advisor was offered through another outlet

Moved/location change

Different goals/change of goals

Bad relationship with previous advisor

Previous advisor left/retired Widows

Widowers

“I didn't switch. My advisor left the firm and the area.” –Widower

“Not happy with the service I was getting. [My former] advisor started talking down to me.” -Widow

“My current financial advisor retired and referred me to a new financial advisor.” -Widow


Widow(er)s dropped their advisor because they felt they no longer needed their services or advice, and this is especially true of widowers.

2%

14%

0%

5%

0%

7%

6%

0%

4%

63%

1%

30%

4%

2%

5%

2%

7%

11%

11%

35%

Don't know/Refused

Other

No reason

Did not completely stop using one

Cost: Advisor cost too much

Had family financial help

Do not have financial advisor

Negative relationship/Advisor does nothave my best interest

I can handle my own finances

No longer a need/unnecessary

Widows

Widowers

36 Why did you decide to stop working with your financial advisor after your spouse’s death?

Dropped their advisor after their spouse’s death: Widows (n=60); Widowers (n=24*) *Small n size. Please use caution in interpreting these results.

Reasons for Dropping Advisors

“Simplified investments to point where advisor was no longer needed.” –Widow

“Every thing needed was already in place.” -Widow


More than four in ten say that a major factor in the decision to stop working with their advisor after their spouse died is that they felt they could do better on their own or with a new advisor.

37

Were the following major factors, minor factors, or not factors in your decision to stop working with the primary financial advisor you worked with when your spouse was alive?

Stopped working with advisor after spouse died: (n=339)

More widows than widowers continued working with their advisor because their former advisor was not helpful after their spouse died (21% major factor for leaving vs. 8% of widowers).

3%

9%

10%

12%

12%

15%

18%

19%

20%

21%

43%

9%

10%

13%

12%

17%

19%

18%

16%

18%

12%

14%

88%

80%

76%

77%

71%

66%

64%

65%

62%

66%

43%

Did not work with other widows/widowers

Was not knowledgeable about financial planning orinvesting

Was not fairly priced

Did not seem to focus on working with women (widowsn=281)

Was not available to me when I needed them

Did not understand me and my financial goals/concerns

Was not helpful after my spouse passed away

Was not conveniently located

I didn't have a good relationship

Did not take the time to explain or educate me on myfinancial options

I thought I could do better on my own or with a new advisor

Major factor Minor factor Not a factor

Reasons for Switching/Dropping Advisor


The majority who dropped or switched advisors say there is nothing their advisor could have done to keep their business.

38 Was there anything your former financial advisor could have done differently to keep your business?

Switched advisors after their spouse’s death: (n=255) Dropped advisor after their spouse’s death: (n=84)

What advisor could have done to keep their business Switched Dropped

No, nothing advisor could have done to keep my business 55% 76%

Was not a personal choice: advisor retired, died, or left for another company 8% 4%

Been more competent; made better financial; investment decisions; given better advice 8% 3%

Been less focused on own agenda; provided personalized advice based on my unique needs 6% 1%

Stayed in touch/communicated with me more 5% 6%

Less condescending; treated me with respect; been more understanding; listened to me more 4% 0%

Personality/attitude differences 3% 1%

I needed different investments/skills than what advisor could provide 3% 0%

Been more trustworthy/honest 2% 0%

Reduced price/been less expensive 1% 1%

Other 5% 4%

Refused/Don't know/Not sure 5% 7%


Widow(er)s started working with an advisor because they needed professional management, financial advice, and investment help.

0%

35%

0%

0%

5%

0%

19%

23%

18%

2%

17%

5%

5%

8%

11%

18%

18%

21%

Does not apply

Other

Did not work with a financil advisor

To ensure I had money/income later

To plan for retirement

Unfamiliar with finances

To handle investments/assets

Their advice/knowledge

Needed professional management/help Widows

Widowers

39 Why did you decide to start working with a financial advisor after your spouse’s death? Started working with an advisor after spouse died: Widows (n=139); Widowers (n=24*)

*Small n size. Please use caution in interpreting these results.

Reasons for Starting to Work with an Advisor

“Because I inherited some assets from my spouse and needed to decide how to manage them.” –Widow

“Because I am not sufficiently knowledgeable about this - and I don't particularly want to me. Though I know this is necessary, it doesn't really interest me. I'd rather rely on a professional.” -Widow

“Because I needed someone to handle my investments since I felt I did not have the knowledge to do so myself.” -Widow


Nearly half of widow(er)s who switched advisors or started working with a new advisor did so in less than a year after their spouse’s death.

11%

13%

9%

21%

19%

27%


5 years

3-4 years

1-2 years

6-11 months

In the first six months

40

How soon after your spouse’s passing did you start working with a new financial advisor? If switched advisors or got a new advisor: (n=418)

How soon after your spouse’s passing did you stop working with your financial advisor? If dropped advisor after spouse died: (n=84)

After spouse’s death, started working with a new advisor…

Three in ten who stopped working with their advisor did so within the first six months of their spouse’s death, though an equal share cannot recall when they dropped their advisor.

31%

0%

8%

13%

17%

30%


5 years

3-4 years

1-2 years

6-11 months

In the first six months

After spouse’s death, stopped working with advisor…


More so than widows, widowers choose to remain unadvised because they prefer to do their financial planning on their own and feel they do not need an advisor.

6%

3%

1%

0%

6%

0%

5%

9%

4%

16%

8%

30%

28%

3%

19%

1%

3%

3%

4%

6%

7%

9%

10%

11%

16%

20%

Don't know/Does not apply

Other

Do not have the time

No reason

Afraid to use an advisor

Haven't found one I like

Currently happy with investments

Do not give good/valuable advice

Don't have enough money to use one

They are too costly

Do not trust advisors

No need/Don't need one

I can do it myself/Prefer to make my own decisions

Widows

Widowers

41 Why have you chosen not to work with a primary financial advisor? Never worked with an advisor: Widows (n=125); Widowers (n=61)

Reasons for Remaining Unadvised

“After many years of working with different brokers and looking at their track record, I've found I've done better on my own.” –Widow

“I'm a do-it-yourselfer.” -Widower

“I feel confident in my own judgment plus I have discussed with my family my wishes if I become incapable of managing my own affairs.” -Widow


Only one in five widow(er)s who do not currently have a primary financial advisor would consider working with one in the next three years.

42 How likely are you to look for a professional financial advisor to work with in the next 1-3 years?

Not currently working with a financial advisor: (n=270)

38% 41%

17%

4%

Not at all likely Not too likely Somewhat likely Very likely

20% are somewhat/very likely to work with advisor in next 3

years

Younger widow(er)s are more likely to consider working with an advisor in the next 1-3 years than older widow(er)s (39% likely among 40-59 year olds vs. 21% age 60-69 or 9% age 70-79).

80% are unlikely to work with advisor in next 3 years


About half of widow(er)s who do not have an advisor would not consider working with one to manage their finances and assets, even later in life.

30%

27%

26%

18%

Not sure

No, I would not use a financial advisor

No, I would use a friend or family member

Yes, I would consider a financial advisor

43 As you age into your 80s and 90s, do you think you would look for a professional financial advisor

to manage your finances and assets? Not currently working with an advisor: (n=270)


CURRENT AND DESIRED SERVICES

44


The overwhelming majority of widow(er)s tend to be satisfied with their current primary financial advisor.

45

Overall, how satisfied are you with your current primary financial advisor? Currently has a primary financial advisor: (n=937)

3%

25%

72%

Not too/Not at all satisfied Somewhat satisfied Very satisfied

97% are satisfied with advisor


The majority say their satisfaction with their advisor remains stable after their spouse’s death.

1%

78%

21%

3%

63%

34%

2%

67%

30%

Lower

About the same

Higher

Total

Widows

Widowers

46

Thinking about your satisfaction with your advisor today compared to the advisor you had before your spouse’s passing, would you say your satisfaction level is….?

If kept or switched advisor: Total (n=774); Widows (n=595); Widowers (n=179)

However, widows’ satisfaction with their advisor increases more following the death of their spouse than does widowers. Widows’ increased satisfaction is due to their advisor’s availability and communication with them, and widowers’ are more satisfied with better results/performance.

13%

13%

2%

12%

13%

21%

15%

16%

10%

3%

4%

7%

7%

7%

7%

11%

16%

29%

5%

6%

6%

8%

8%

10%

12%

16%

25%

More comfortable

Personalized contact

Understands my situation/goals

Trustworthy

Helpul: helped with finances

Better results

Involved/focused on me

Better educated/knowledgeable

Better communication/availability

Top Reasons for Increased Satisfaction

Why do you feel your satisfaction with your advisor today is (higher/lower)? If has primary advisor and satisfaction changed: Total (n=274); Widows (n=229); Widowers (n=45)


Nine in ten widow(er)s would recommend their primary financial advisor to friends or family.

47

How likely are you to recommend your primary financial advisor to friends or family? How likely are you to continue working with your primary advisor?


8%

31%

61%

Not too/Not atall likely

Somewhat likely Very likely

92% would recommend their

advisor

3%

21%

77%

Not too/Not atall likely

Somewhat likely Very likely

97% are likely to continue working with

their advisor

Nearly all say they are likely to continue working with their advisor.


Widow(er)s who are currently being advised are getting help with investments, financial planning, and retirement income planning.

4%

5%

10%

14%

14%

15%

18%

31%

36%

36%

50%

53%

57%

None of the above

College planning

Budgeting

Provided counsel on non-financial topics

Reviews and advises on insurance

Estate planning

Planning for long-term care or health expenses

Tax planning

Investing in annuities

Retirement planning

Retirement income planning

Financial planning

Investing in stocks, bonds, ETFs, etc.

48 What types of activities/goals does your advisor help you with today?

Currently working with an advisor: (n=937)

Less than one in five are getting help with planning for long-term care or health expenses, estate planning, reviewing and advising on insurance, providing non-financial counsel, budgeting, or college planning.


Few express a desire for greater or expanded services.

41%

1%

4%

4%

4%

5%

5%

9%

9%

11%

11%

11%

13%

None of the above

College planning

Budgeting

Investing in annuities

Provided counsel on non-financial topics

Reviews and advises on insurance

Investing in stocks, bonds, ETFs, etc.

Tax planning

Retirement income planning

Planning for long-term care or health expenses

Financial planning

Retirement planning

Estate planning

49 What would you like your advisor to help you with?

Currently working with an advisor or likely to be: (n=1,023)

Desire for Services Not Currently Received


To be attractive to widow(er)s, advisors must be knowledgeable and reliable. Specializing in helping widow(er)s is less important.

50 How important is it to work with a financial advisor with the following attributes?

Currently advised or likely to be: (n=1,023)

Widows are more likely to say it is somewhat/very important to work with a financial advisor who specializes in helping those who have lost their spouse (44% vs. 27% widowers).

13% 29% 32%

40% 61% 64% 64% 66% 69%

74% 79% 82%

89% 91%

7% 9%

27% 35%

40% 40%

24% 26%

32% 28%

28% 22%

17% 17%

9% 8%

Same gender as meSpecializes in helping single parents

Specializes in helping widows/widowersLocated near me

Specializes in retirement income planningHas sufficient office support

Is a Certified Financial Planner (CFP)Non-salesy

Personable/friendlyTakes the time to know me

Communicates with me on my termsAccessible

Current on financial products availableResponsive

ReliableKnowledgeable

Very important Somewhat important


FINANCIAL DECISION-MAKING

51


Financial decision-making responsibilities shift when individuals lose their spouse. Widows, especially, have to take on more responsibility.

86%

9% 2% 2%

14%

28%

46%

9% 2%

You alone You, with input fromsomeone else/your

spouse

You and someone else(or your spouse) share

equally in decision-making

Someone else/yourspouse, with input from

you

Someone else/yourspouse alone

Currently Prior to Spouse's Death

52

Who is currently the primary financial decision-maker for your household? And prior to your spouse’s passing, who was the primary financial decision-maker for your household?

Widows (n=919) Who else helps to make financial decisions for your household? Someone else helps: Widows (n=33)

Widowers are more likely to say they are currently the sole financial decision-maker in their households (93% vs. 86% of widows). Prior their spouse’s passing, half (49%) of widowers said they were the primary financial decision-maker, with input from their spouse, compared with 28% of widows. Widows were more likely to say their household financial decisions were made equally before their spouse’s death (46% vs. 23% of widowers).

Other person who helps: 39% Family Member 32% Financial Advisor 3% Broker 26% Other

<0.5%

Widows’ Financial Decision-Making Role


Widows tend to have lower risk tolerance than widowers.

53

How would you rate your level of risk tolerance as it relates to your investing? Compared to your deceased spouse, would you say that you have…?


• On a scale where 0 means “extremely low tolerance to risk” and 10 means “extremely high tolerance to risk,” widow(er)s tend to be on the lower risk tolerance side of the scale, with 4.14 being the average level of risk.

• Widows, however, tend to have lower levels of investment risk tolerance than widowers (3.93 vs. 4.64). • Likewise, widows are more likely than widowers to say they are less tolerant of investment risk than their

deceased spouse was, as shown below.

23%

49%

28%

17%

48%

35% 39%

50%

12%

You had higher tolerance to risk A similar tolerance to risk You had a lower tolerance torisk



A third of widows are “do it with me” investors, nearly three in ten are “do it for me” investors, and a quarter are “do it yourself” investors.

15%

22%

15%

26%

22%

9%

22%

9%

34%

27%

We did not/You do not invest

A "do it yourself" investor who likes to select your owninvestments and manage them on your own

A "discusser" who likes to discuss investing with friends/familybefore making investment decisions on your own

A "do it with me" investor who likes to work with a financialprofessional to help make your investment selections and

manage them

A "do it for me" investor who prefers to have a financialprofessional select your investments and manage them for you

Widows Late Spouse

54

When it comes to making investment decisions now, which one of the following best describes you? When it came to making investment decisions, which one of the following best described your spouse who passed away?

Widows (n=919)

Widows are more likely to currently be “do it for me” investors (27%) compared with widowers (15%), and widowers are more likely to currently be “do it yourself’ investors (40% vs. 22% widows).


PROFILE OF RESPONDENTS

55


Demographic Profile

56

Total (n=1,207)

Widows (n=919)

Widowers (n=288)

Gender

Male 30% -- 100%

Female 70 100% --

Age

40 to 49 6% 6% 5%

50 to 59 20 21 18

60 to 69 32 29 38

70 to 79 42 44 39

Employment Status

Employed full-time 29% 28% 32%

Employed part-time 10 10 8

Not employed 61 62 59

Retired

Yes 65% 65% 64%

No 35 35 36

Total (n=1,207)

Widows (n=919)

Widowers (n=288)

Hispanic Ethnicity/Origin

Yes 4% 4% 3%

No 96 95 96

Prefer not to say 1 1 1

Race

Caucasian/White 92% 91% 94%

African American/Black 4 4 2

Asian 2 2 1

Other 2 2 1


Spouse Passed Away

1 year ago or less 5% 4% 7%

2 to 3 years ago 22 20 26


6 to 10 years ago 32 34 27

11 to 15 years ago 13 15 10



Demographic Profile (continued)

57


Education (n=1,204) (n=918) (n=286)

Less than high school graduate * * --

High school graduate 8% 10% 1%

Some college/technical school 22 25 14

College or technical school graduate 35 31 44

Graduate school 35 33 40

Prefer not to say * * --

Have Financial Advisor (n=1,207) (n=919) (n=288)

Yes 55% 58% 48%

No 45 42 52

Total (n=1,207)

Widows (n=919)

Widowers (n=288)

Savings and Investments

$75,000 to $99,999 11% 13% 8%

$100,000 to $249,999 44 41 50

$250,000 to $499,999 22 22 21

$500,000 to $749,999 8 9 7

$750,000 to $999,999 6 7 4

$1 million or more 9 9 10

Annual Household Income

(n=1,205) (n=919) (n=286)

Less than $25,000 2% 3% --

$25,000 to $49,999 8 11 *

$50,000 to $74,999 37 36 40%

$75,000 to $99,999 26 25 26

$100,000 to $149,999 18 16 22

$150,000 to $199,999 4 3 8

$200,000 or more 3 3 3


*<0.5%


Demographic Profile (continued)

58

Total (n=1,207)

Widows (n=919)

Widowers (n=288)

Children

None 20% 18% 25%

1 16 17 13

2 38 36 41

3 or more 26 29 20

Dependent children under age 21 living in household

None 93% 91% 96%

1 4 5 2

2 3 3 2

3 or more 1 * 1

Total (n=789)

Widows (n=604)

Widowers (n=185)

Life insurance received when spouse died

Under $50,000 30% 22% 47%

$50,000 to $249,999 26 30 18

$250,000 to $999,999 9 11 5

$1 million or more 1 1 1

Prefer not to say/Don’t know

35 37 30

What percent of your total investable assets are…

(n=1,207) (n=919) (n=288)

Managed with the assistance of a financial advisor

51% 43% 55%

Managed on your own, without an advisor

46 54 42

Other 3 2 3

*<0.5%

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