Client Satisfaction Key for Growth Among Recordkeepers
Recordkeepers can expect a greater amount of review activity from plan sponsors through 2026, finds new research from Cerulli.
The latest Cerulli Edge report shows that 27% of plan sponsors will conduct a new recordkeeper search this year and 56% plan to run a due diligence review to benchmark recordkeeping fees and services. All plan segments, aside from large employers, said they expect to perform a review of their recordkeeping partners.
The benchmarking may not be a large cause for concern, assures Cerulli. The research found that while recordkeepers receive “thousands of request for proposals or pricing,” only a small number of employers actually switch partners. In fact, less than 5% of plans changed recordkeepers in 2025.
That finding bodes well for recordkeepers wanting to keep clients, but can prove difficult for those aiming to snag a client from competitors.
“Approximately one out of every three plan sponsors conducting a review is seriously considering a change, while the other two are merely performing a benchmarking exercise,” says Chris Bailey, director at Cerulli. “Early lead qualification will help recordkeepers allocate resources effectively by identifying when they have a realistic chance to win the plan. Recordkeepers that can do this will be able to focus on winning viable opportunities rather than pursuing leads that are unlikely to result in a plan sponsor making a change,” he concludes.
To retain clients, the firm also recommends recordkeepers keep an eye out on signs that a client is leaving, like paying attention to low satisfaction scores.
“The importance of addressing service issues proactively cannot be overstated,” says Bailey. “By the time a plan sponsor is conducting a search prompted by a poor service experience, it may be too late for a recordkeeper to retain the plan. Clear communication about any issues that arise can help mitigate the plan sponsor’s concerns.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.