CHICAGO, August 19, 2014 — New research from Spectrem Group (www.spectrem.com) indicates that defined contribution plan participants are increasingly taking to social media for financial activity and advice, regardless of age. The report, DC Participant Insight Series: Using Social Media and Mobile Technology in Financial Decisions, shows over two-thirds of plan participants ages 50 and above are on Facebook, almost half are on LinkedIn, and 12 percent of participants overall say they research financial information on social media – an increased trend from last year’s finding that, while not yet pervasive, Facebook and LinkedIn are the most popular social media sources for financial and investment information.
Additional findings include:
- One in ten plan participants use LinkedIn to screen a potential advisor.
- Nearly half of participants (42 percent) say that recent hackings are a source for concern in sharing financial information on social media, though privacy concerns are expressed largely by those over age 50.
- Nineteen percent of plan participants rely more on social media than telephone to communicate with others, a slight decrease from last year (20 percent).
- Sixteen percent of respondents say they’d follow a trusted advisor if the advisor was on Twitter (an increase from last year’s 12 percent).
“Social media is still new and fragile territory for financial activity,’’ says George H. Walper Jr., president of Spectrem Group. “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.”
Additional insights are available at Spectrem.com and Spectrem’s Millionaire Corner, including:
· How are DC Plan Participants Reading Financial Blogs?
· Plan Participants Find Financial Uses for Social Media
About Spectrem Group
Spectrem Group (www.spectrem.com) is the leading research provider in the wealth management marketplace. Each month, Spectrem Group surveys more than 1500 investors with $100,000 to $25 million of net worth regarding their investment attitudes and behaviors.
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