Ageing and Society recently published a study showing that the poor and elderly are the most anxious demographic when dealing with financial advisors. Often, opening your books to an advisor can feel like financially disrobing in front of a stranger.

What characteristics – specifically among elderly people – are correlated with advisor anxiety?

The study’s authors surveyed nearly 1000 adults, aged 50 and over, in the Netherlands. They were divided into three income groups: Low-income Strugglers, Middle-of-the-Roaders and Secure High Rollers.

From the paper:

This study shows that some 32 per cent of older Dutch individuals reported a moderate to severe degree of adviser anxiety. At the opposite (low anxiety) end of the spectrum, only 11 per cent of older Dutch adults revealed little or no financial adviser anxiety.

[…]

Findings from the multivariate regression and cluster analyses paint a clear portrait of the types of individuals who are likely to experience adviser anxiety. At an incidence rate of 42 per cent, members of the Low income Struggler group were the most likely to experience this form of psychological distress.

[…]

22 per cent of the Secure High Roller group reported moderate to severe levels of adviser anxiety. Recall that members of this elite group were over-represented by highly educated, high-income, high-knowledge males. Furthermore, it is conceivable that they would have been more likely than members of the other two groups to have worked with an advisor on previous occasions.

The full paper [published in April 2016] and its findings, titled “Why do older adults avoid seeking financial advice? Adviser anxiety in the Netherlands”, can be accessed here [subscription required].

The authors were Henrik P. Van Dalen of Tilburg University, Kene Henkens of the Netherlands Interdisciplinary Demographic Institute and Douglas A. Hershety of Oklahoma State University–Stillwater.