Ethical Issues in Retirement Planning Study: An Advisor's Perspective

The study consisted of two related research phases. The first was an online survey that asked respondents to answer a series of rank-choice questions related to ethical concerns in retirement income planning. The second phase consisted of soliciting volunteers at the end of the survey to gather more specific clarification on a number of ethical questions through telephone-based interviews.

Maintaining Ethical Behavior in a Challenging Environment 

Retirement income planning is extraordinarily challenging. Retirement income professionals are expected to manage a variety of client risks, legal changes, and ethical issues when developing a comprehensive plan. 

Advisors are well aware of these challenges and worry that the industry as a whole lacks the proper training and education required to effectively serve clients. 

The purpose of this research was to specifically identify financial service professionals’ primary ethical concerns in retirement income planning, gauge how financial service professionals view the industry’s current ethical challenges, and understand how ethical practices can be improved in retirement income planning. 

Key Takeaways: Advisors' Main Concerns 

The study found that advisors share key concerns when it comes to ethics in the industry. 

• Respondents are troubled that in the increasingly complicated field of retirement income planning practitioners lack the comprehensive knowledge to offer expert advice. 
• Advisors are concerned that clients are being put at risk because of a lack of education on the client side. 
• Retirement planners are very concerned that clients cannot understand their plans and that advisors are not adequately educated or trained to meet the clients’ complex retirement income needs. 

View the report to see the top ethical concerns of retirement income professionals and more insights.