The 2019 TIAA Institute-GFLEC Personal Finance Index : Financial Advice
Financial Literacy in the United States and Its Link to Financial Wellness
Financial advice and the P-Fin Index
Individuals may consult a financial advisor on their own or within the context of an employer-sponsored benefit (most typically, a retirement savings plan) or an employer- sponsored financial wellness program. Results from the 2019 P-Fin Index show that individuals with greater financial literacy are more likely to receive financial guidance from a professional advisor or advisory service (Figure 16). The positive correlation between financial literacy and the use of financial advice indicates that the two are serving as complements, as opposed to financial advice being a substitute for financial literacy. This is consistent with previous research that identified a complementary relationship.17 Greater financial literacy positions individuals to be proactive participants in advice sessions, which is valuable since final decisions are ultimately up to them.