Consumer confidence is nearing a 50-year low. Roughly 90% of Americans feel the economy is in recession. These findings come from the June Reuters/University of Michigan Survey of Consumers, the most recent installment of that survey as of this writing. And despite at least one press report that concluded the economy is not really as bad as it is commonly perceived to be, your clients' perceptions become their reality. And their perceptions of the economy are not positive ones.

Those findings are consistent with the Ninth Annual Phoenix Wealth Survey of households, which includes those with a net worth in excess of $1 million. Even within that segment of the population, the outlook is getting bleaker. Just 18% of respondents said they were either very or fairly optimistic about the economy for the next two years; in 2002, 53% felt that way. (This research was conducted in the first quarter for Phoenix Cos. by Harris Interactive.)

If you've been following the Phoenix Wealth Survey over the years, you have noticed a definite downward trend in optimism since the high in 2002. What's new, though, is how long the bad economy is expected to last, according to the survey's founder, Walt Zultowski, Ph.D. In fact, 25% of those surveyed expect a prolonged downturn for the next two years. Another 32% say that the worst is yet to come.

As a result, many of your clients appear to be hunkering down financially, questioning each and every outlay and eliminating expenses where they can. Among the expenses they're questioning: your fees. That's especially true when their investment returns have been less than stellar.

The Wealth Survey indicates that investors are using advisors less and doing it themselves more. The share of respondents who say they don't receive advice from a financial advisor jumped to 33% this year from 22% in 2006. The percentage of people who say they don't have a primary advisor jumped seven percentage points over last year. We saw similar attitudes during the last economic downturn.

To be sure, there are a variety of reasons for such behavior besides your fees. An important one may be the dramatic shift from defined-benefit to defined-contribution retirement plans. This is a fundamental shift-from a benefit directly linked to your clients' salaries and years of service to a benefit dependent largely on their actions by way of contributions to a 401(k) plan and the investment decisions made in that plan. (Granted, investment returns play a big part as well.)

In 1982, the year 401(k) plans were introduced, about 80% of active participants in private-sector qualified retirement plans participated in either a defined-benefit plan or a combination defined-benefit/contribution plan. Stand-alone defined-contribution plans accounted for just 20% of active participants.

Today, the numbers are reversed and even more stark. Less than 10% participate in stand-alone defined-benefit plans, whereas more than 65% only have access to a defined-contribution plan, probably a 401(k). Because the benefits flowing from such plans are largely dependent on what participants do, the retirement burden is squarely on their shoulders, and they appear to have the opinion that they may as well "take it from here."

You may not realize that your clients feel this way. Rather than calling or writing to bid their good byes, they may have already fired you in their minds. But don't kid yourself. If many of the Phoenix Wealth Survey respondents say that they either don't have a primary advisor or don't receive advice from any advisor, then you've probably taken a hit or two. And even if you haven't lost a client, there's no time like the present to make sure you don't lose clients in the future. Fortunately, the survey gives insight into how to do that.

I noted in my last article that your clients are worried about retirement—Very worried. In fact, the survey found that their top two financial goals—by a long shot—concerned their retirement. Forty-four percent said that their most important financial goal was to "assure a comfortable standard of living in retirement" while another 21% said that their most important goal was to "not run out of money in retirement." In other words, 65% of the high-net-worth individuals we surveyed said that they were worried that their nest eggs wouldn't provide a comfortable retirement.

No doubt you think that you're helping your clients address that concern. Every time you assist a client earn more on their money, you're increasing the size of his or her nest egg. However, the Phoenix Wealth Survey tells us that they may not understand that. Whereas 71% say that their advisor helps them with investing advice, only 50% think they're getting help with retirement planning. In short, there may be a disconnect between you and your clients: You're thinking that you're giving retirement advice, while all your clients hear is investment advice—advice that in a down market seems pricey.