Sometimes it’s hard to think about generating new business when you’re focused on servicing existing clients.
As new RFP activity remains largely on hold, defined contribution plan specialists with over $50 million in DC AUM are working overtime to guide their existing clients through the pandemic, according to Retirement Plan Advisor Trends, a just-released annual Cogent Syndicated study from human behavior and analytics firm Escalent.
Nearly six in 10 DC advisors (58%) agree that the COVID-19 pandemic is thwarting the growth of their retirement plan business, according to the study.
“In stark contrast to their peers, DC specialists are increasing the assistance they’re offering to plan participants in assessing rollover and distribution options, long-term financial planning, one-on-one investment advice and retirement income strategies,” said Sonia Davis, senior product director at Escalent. “Moreover, they cite a sizable uptick in providing plan sponsors with regulatory updates and consulting with clients on plan design, services and features.”
Stemming from the heightened focus on client service and support, the latest findings reveal DC advisor expectations of providers are also evolving. This underscores the value of firms developing effective DC advisor outreach and engagement strategies.
“These are extraordinarily complex times for anyone to navigate financially, including the most seasoned DC advisors,” said Linda York, senior vice president at Escalent. “Firms must remain fixated on providing superior participant education, regulatory guidance and plan design options, as the support rendered throughout the pandemic will undoubtedly fuel future client recommendations for years to come.”
According to the study, a handful of DC plan providers have differentiated themselves, earning strong, positive recall among DC specialists for their COVID-19-related information and content.
Top 10 firms for COVID-19 communication recall
1. American Funds
2. Vanguard
3. Fidelity Investments
4. Merrill/Merrill Edge
5. Alliance Benefit Group
6. ADP Retirement Services
7. Empower Retirement
8. Capital Group
9. Principal Financial Group
10. T. Rowe Price
Base: DC Specialists (plan advisors with $50M+ in DC AUM)
Source: Escalent/Cogent Syndicated “Retirement Plan Advisor Trends,” Sept. 2020