It’s a new year, and time to look ahead at what it will bring.
In 2018, financial wellness was one of the hottest plan advisor trends, and the industry took strong steps toward creating solutions that actually power progress—not only for plan participants and sponsors, but for advisors and for firms.
While last year we spent time defining financial wellness, 2019 brings a clearer picture and deeper understanding of the topic.
Most advisors now understand that financial wellness is not a simple plan add-on or a check-the-box solution.
Instead, having a comprehensive, integrated, technology-backed wellness program offering is a plan defender, a business winner, a growth opportunity, and a revenue generator.
As we finish out this year and head into 2019, here’s a look at what retirement plan advisors can expect to see this year:
- Advisors Finally Evolve Their Tech
Last year we predicted that plan participants will continue to want a modern, simple user experience that gives them both a comprehensive view of their financial situation and a guided, personalized path to reach their goals.
While advisors and firms were hesitant last year to invest in technology to power those experiences, in 2019 they can’t afford to wait.
According to a recent Forrester study, customer experience metrics at wealth management firms have remained flat for the third year in a row — but a fourth is not in the cards. People won’t accept below-average tech anymore.
Features like account aggregation, personalized content delivery, and accountability triggers are key elements in any successful financial wellness program. 2019 is the year firms listen, invest, and put solutions in-market.
- Firms Launch Pilots as Minimally Viable Products
Successful financial wellness programs take time to plan and launch. Further, it’s no secret that large enterprises take time to put new programs in place.
That’s why in 2019, we can expect to see pilots hit the market sooner than later. Large enterprises may not move quickly but they recognize the need for speed when it comes to wellness. They’re up against a time crunch—so while the planning of larger, customized programs are already underway, they need a solution in place now.
Expect to see a flurry of pilot programs in the year to come. The key will be defining metrics for success. Is it more than just the worried well showing up for a webinar, or are participants really gaining confidence in their ability to manage their financial situation?
- Financial Wellness Programs Get More Comprehensive and Effect Real Change
Solutions that address a single issue, such as student loan debt or credit scores, are valuable, but miss the bigger picture. Because the definition of financial wellness is comprehensive and personalized, a solution to address it needs to be as well.
An assessment to understand a participant’s current situation and future goals, with an action plan to help them reach those goals, all wrapped in an engaging digital package has the power to effect change.
In 2019, expect programs that incorporate the familiar advisor-to-participant touchpoints and digital-only portals, along with new connected, human-guided, technology scaled financial wellness programs that make change simple, easy to follow, and effective.
- Wider Recognition of the Role Financial Coaches Can Play in Helping Participants Reach Their Goals
Financial advisors and planners are highly trained across a variety of complex situations.
Many participants, however, need help with basic financial tasks such as budgeting, or with addressing negative beliefs and attitudes around money—something most financial advisors receive little training in and may be uncomfortable doing.
Financial coaches can handle the more basic issues, freeing the advisor to do what they do best, and become more common.
In 2019, we’ll see wider recognition of financial coaches and their pivotal role in financial health programs, and firms will be hiring more and more of them. Keep an eye out for position titles like Head of Coaching, Financial Coach, and Financial Health Mentor.
- Advisors Generate Increased Revenue from Financial Wellness Programs
As more plan sponsors seek out comprehensive and authentic wellness solutions, plan advisors are realizing that wellness programs do more than retain existing 401k plans and attract new ones.
But many may not be aware of the additional opportunities wellness programs can offer through the transparency digital technology allows.
In 2019, comprehensive digital solutions will allow advisors to identify opportunities for providing additional services to individual participants who stand to benefit from wealth management, financial planning, or risk management.
From rollovers to products and more, advisors stand to unveil entirely new revenue streams that historically have been left on the table due to the opacity of the industry. In short, transparency fueled by digital financial wellness has the power to help participants and plan sponsors—and to generate totally new income for advisors.
2019 is set up to be a pivotal year for incorporating financial wellness technology into retirement plan advising. Advisors are primed and ready to take a strategic and well-thought leap of faith by investing in pilots now and fully configured experiences in the near future.
With increasing healthcare costs and rates of employee turnover and stress at record highs, plan sponsors need comprehensive digital plus human powered programs more than ever. Participants are actively asking for help and expect the experience to be simple. And everyone wants to make or save money at every step of the process.
We’ve spent decades trying to solve large, inextricably linked problems with single-issue solutions that address only a small part of them.
The financial industry is finally coming to terms with the fact that short-term solutions are not sustainable. In 2019, we start working together to build smart programs from the ground up, backed by configurable wellness technology, strategic rollouts, and sound success metrics.
Nicole Fletcher Zappala is the Director of Marketing for Questis. She is a passionate marketing expert who is driven by changing the way people experience their finances through technology. She looks forward to a day in the near future where everyone will have access to the financial knowledge and guidance they need to live their best, financially fit lives.
Nicole Zappala is the Founder of The Wiggle. Prior to founding The Wiggle, she was Director of Marketing for Questis.
