More than 80% of advisors view 3(16) fiduciary outsourcing as a retirement plan best practice and a growing trend, according to a new study released today by Pentegra as it celebrates Sunday, March 16 as “3(16) Day.”
“Our annual 3(16) Day highlights the key benefits fiduciary outsourcing offers.”
Pentegra’s Carlo Guerrera
The new study on “Advisor Attitudes Toward 3(16) Fiduciary Outsourcing” highlights the White Plains, N.Y.-based firm’s expertise as a preeminent 3(16) fiduciary services provider in the retirement industry. The survey measured how advisors are using fiduciary outsourcing to help clients better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their services and manage their practices.
“Today, outsourcing 3(16) fiduciary responsibilities to a professional provider is a retirement plan best practice that delivers significant benefits to both advisors and their clients. By shifting these burdens to a dedicated expert, advisors can help clients mitigate risks associated with non-compliance, penalties, and potential litigation—while freeing themselves to focus on core competencies and business growth,” said Carlo Guerrera, vice president, sales and key accounts at Pentegra.
“Our annual 3(16) Day highlights the key benefits fiduciary outsourcing offers, delivering a strategic solution for retirement plan sponsors and advisors by helping them save time, minimize fiduciary risk and reduce work by outsourcing time-consuming retirement plan responsibilities to an expert team,” Guerrera added.
Key survey highlights include:
• Nearly 70% of advisors say administrative burdens and fiduciary risk are chief concerns among clients in managing their retirement plans.
• More than 70% of advisors surveyed cite administrative issues as the leading retirement plan issue that takes up most of their time.
• Advisors cite reducing time spent on plan problems and ensuring plans are optimized for success as key goals for their retirement plan business.
• Less than half of clients outsource 3(16) fiduciary responsibilities today, representing an opportunity to offer a value-added service.
Pentegra’s Advisor Study on Attitudes on 3(16) Fiduciary Outsourcing was conducted from Jan. 2 through Feb. 7, 2025. Data included responses from advisors nationwide. Visit 316fiduciaryday.com for more information.
SEE ALSO:
• Plan Sponsors Spending Half Their 401(k) Time on Admin Work That Could Be Outsourced
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
