Certified Plan Sponsor Professional (CPSP) Practice Exam

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Retirement plan participants that work with investment advisors generally?

Have lower savings goals and save less
Have higher savings goals and save more than other plan participants
Rely solely on employer contributions
Are less informed about investment options

The correct answer is: Have higher savings goals and save more than other plan participants

Participants in retirement plans who engage with investment advisors typically exhibit higher savings goals and contribute more to their retirement plans compared to those who do not seek such professional guidance. This is largely because working with an investment advisor provides individuals with tailored financial advice, education on investment options, and a clearer understanding of the benefits of saving for retirement. As a result, these participants are often more motivated to set ambitious savings targets and follow through with increased contributions. Additionally, investment advisors help individuals align their investment strategies with their long-term financial goals, instilling a sense of confidence and commitment to their retirement planning. By focusing on a proactive approach to their retirement savings and investments, individuals who work with advisors are positioned to cultivate healthier financial habits that can lead to greater overall savings. This trend is supported by research indicating that those who utilize financial advisory services tend to accumulate greater wealth over time, reinforcing the positive impact of professional investment guidance.