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A new LIMRA study finds that while consumers admittedly are not very knowledgeable on the subject of personal finance, they want to learn more about it.

The report is based on a series of focus groups and a survey. When asked about being able to handle topics such as saving for retirement, planning for long term care and purchasing life insurance without the help of a financial advisor, most participants graded themselves poorly with the average grades being C, C- and C+ respectfully. However, we know from previous LIMRA research¹ that more than half of U.S. based consumers indicated they were somewhat or very interested in learning about subjects like:

• Retirement planning – 56%
• Creating a will / estate planning –  56%
• Medical / health care costs planning – 54%
• Financial investment planning – 53%

The study also reinforces that consumers want their advisors to use language they understand to explain products. They equate clear communication with trust. This illustrates another reason why advisors should take the time to educate their clients. Not only will it build trust, but ultimately it may result in more products being purchased as well. At the end of the day, the more educated consumers are on finances the more likely they are to save for retirement and purchase retirement products.

The results were from 12 focus groups in six cities across the U.S. and Canada. Consumers were age 25 or older, not retirees and fell into one of four categories: Millennials, Gen X/Boomers, Families, or Pre-retirees. For more information on these findings LIMRA members can read the full report, A Little Knowledge Can Go a Long Way.

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¹Source: Financial Triage: Assessing Consumer Wellness, LIMRA, 2015