Boosting Retirement Readiness and the Economy Through Financial Advice

Population aging is raising questions regarding retirement readiness and also resulting in slower potential economic output growth. In the report Financing the Future: Economic Benefits of Addressing Retirement Readiness, the Conference Board reviews the literature that examines the link between individuals gaining financial advice and their savings and investment decisions. Based on the information gathered, the report then examines the long-term impacts of increased savings on the economy, using a national economic model to quantify the impact of increased savings on a wide range of economic variables over a long-term forecast horizon.

In conclusion, the Conference Board found that financial advisors can increase individual saving rates; higher savings would help to alleviate retirement readiness concerns while also boosting potential economic output; and while an increase in domestic savings can lower real GDP in the short term, it results in economic gains over the longer term.