The modern family is certainly different from the traditional dad, stay-at-home mom and 2.5 kids in the 'burbs — in composition, in actions and, as it turns out, in its approach to money.
It's so different that it affects how the family saves, spends, plans for retirement and consults (or not) with a financial advisor.
So say the results of the latest Allianz LoveMoneyFamily Study, which looked at the financial goals and successes of modern families and compared them to those of traditional families to see how they stack up.
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Not surprisingly, Allianz said the financial situation is more complex for modern families, with their blended households, same-sex or solo parents, or multiple generations living in the same household. And their needs and attitudes are different, as well, with many more of them having endured job losses, bankruptcy or stints of disability.
As a result, less than a third (30 percent) of modern families said that they felt financially secure compared to 41 percent of traditional families, Allianz said.
"American family structures have evolved significantly in the past 40 years and the traditional family model — heterosexual couple living together with their children — represents less than 20 percent of households today vs. more than 40 percent in 1970," said John Carroll, head of U.S. retail for Allianz Global Investors.
Modern families feel less financially secure than the traditional family, and are more likely to say that they're not saving as much as they could — or aren't saving at all.
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They've also saved less for retirement — $196,800 compared with $251,100 for traditional families — and are also more likely to say they've never used a financial advisor (56.7 percent, compared with traditional families at 46.7 percent) or aren't presently using one.
Among those who have used a financial advisor, more than twice as many modern families have done so for planning and managing a retirement account (54 percent) than have done so for setting up a plan to save money (26.8 percent).
Perhaps the good news is that those modern families that haven't consulted with an advisor say they are more likely to consider using one — particularly for planning and managing a retirement account — than traditional families are.
Carroll's advice for advisors?
"It's undeniable that the changing American family structure will create new opportunities and challenges for financial professionals," he said. "Those financial professionals who take the time to understand and address the differing needs of the modern family will be more successful at forging meaningful relationships. It's clear that an empathetic approach and true partnership with modern families are critical to boosting their feelings of financial security and paving the way to a successful financial future."
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