A recent survey by the Employee Benefit Research Institute finds that 43% of American workers don't know where to turn for retirement guidance. Worse, many who think they know are getting dangerous advice.
Here are the five major sources of retirement advice, ranked from worst to best.
5. Social Media Influencers. One in five workers relies on these non-fiduciaries. They are not legally bound to act in your best interest and are often compensated by product promotions. Their generic advice can be damaging.
4. AI Tools. Usage nearly doubled from 11% to 18% of workers in one year. AI is useful for education but cannot build a personalized plan. Treat it as a study buddy, not a strategist.
3. Family and Friends. The most common source, used by 39% of workers. While free and comfortable, their advice is filtered through their own life circumstances, making it potentially wrong for you.
2. Employer’s HR & Plan Provider. Underused by 73% of workers. Your 401(k) provider offers free tools and consultation, and HR knows plan specifics. It’s a solid, free starting point.
1. A Professional, Fiduciary Financial Advisor. The gold standard. A fiduciary is legally required to put your interests first. The payoff can be dramatic, with research citing the potential to more than double a portfolio’s growth over 25 years.
The bottom line: Start with employer resources, use AI for education, lean on family for support, ignore influencers, and when ready, find a fee-only fiduciary.