Defined contribution (DC) retirement plan participants across all age groups are taking to social media for financial information and advice, according to Spectrem Group.
“Using Social Media and Mobile Technology in Financial Decisions,” a report from Spectrem’s DC Participant Insight Series, shows that more than two-thirds of participants ages 50 and older are on Facebook. Around half are on LinkedIn, and 12% say they research financial information on social media.
The report suggests Facebook and LinkedIn have become the most popular social media sources for financial and investment information. In addition, one in 10 plan participants use LinkedIn to screen potential advisers and other financial services providers. Sixteen percent say they would follow a trusted adviser if he were active on Twitter.
Nearly half of participants (42%) say that recent high-profile hackings have made them leery of sharing financial information on social media, though privacy concerns usually come from people older than age 50, Spectrem finds.
“Social media is still new and fragile territory for financial activity,” says George H. Walper Jr., president of Spectrem Group in Lake Forest, Illinois. “But we are seeing slow and steady growth, from the federal level to the investor, in using these platforms for investment dialogue, relationships and servicing.” —Matthew Miselis
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