There have been many economic challenges over the past year, such as rising inflation and higher interest rates, yet the need for advanced education has remained just as important to the majority of Americans (55%), according to a recent study by financial services firm Edward Jones with Morning Consult. In fact, respondents’ plans to contribute to education expenses have increased over the past two years.
Despite this, the 12th annual Edward Jones 529 awareness survey found that the number of respondents who correctly identified a 529 plan as an education savings tool is at its lowest level since 2020 (34% compared to 45%).
“While it is great that Americans are prioritizing saving for education expenses, it’s unfortunate that the awareness of 529 plans has declined substantially,” said Steve Rueschhoff, Principal, Managed Investments and Insurance at Edward Jones. “With changes to federal and state laws, 529 plans can now be used for more things, benefiting more Americans and their opportunities for education and advancement.”
Financial Advisors Are Key to Raising Awareness and Confidence
In fact, financial advisors can play a critical role in making sure Americans understand the benefits of 529 plans and also help ensure they have a comprehensive plan for covering education expenses. Nearly one in four adults says working with a financial advisor to guide their financial decisions would help them feel more confident.
The survey also found that Americans have a greater interest in enrolling in a 529 plan after learning about the wide array of benefits – emphasizing an opportunity for financial advisors to educate individuals on these strategies. This is especially true in light of the recent passage of the SECURE 2.0 Act which (among other provisions) enables 529 account owners to roll over unused 529 assets into a Roth IRA for the beneficiary. This change is effective in 2024 and is subject to certain criteria and limits. Over one-third of…
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