Retirement Plans Still Lag in Digital Experience: J.D. Power
Today’s digital channels, from refreshed websites to modernized mobile apps, present opportunities for financial institutions and firms to support clients outside of in-person interactions. Yet, the retirement planning industry is failing to keep up with its digital experience, finds J.D. Power’s latest study.
The 2024 U.S. Retirement Plan Digital Study, released today, found that most retirement planning digital experiences are falling behind in user satisfaction. Just 21% of retirement websites and mobile apps are meeting client’s expectations.
Furthermore, using a digital experience hierarchy that assesses retirement plan website and mobile app experiences, J.D. Power found that 21% of customers’ digital experiences failed to meet the basic criteria for a foundational experience and only 21% have digital experiences that are classified as valuable.
The firm’s grading measured retirement plan website and mobile app experiences based on specific elements that define three performance levels: foundational, functional and valuable. Foundational experiences focus on basic design, security and key information access; functional experiences center on ease of use and navigation; and valuable experiences relate to creating more personalization and delivering these experiences proactively.
The setback presents a critical issue for the industry, as more participants and clients rely on digital tools and features to help bolster engagement and plan satisfaction. Research has shown that more clients value digitalization in their finances—a study by Ernst & Young found that 86% of clients surveyed described their primary financial provider’s aptitude to offer a “seamless cross-channel experience” as important.
“Expectations for digital are heavily influenced by customers’ entire universe of digital experiences and plan providers have not kept pace with other sectors,” stated Craig Martin, managing director and global head of wealth and lending intelligence at J.D. Power. “Falling behind on digital can have very real consequences for engaging and influencing perceptions and behaviors.”
Still, some institutions are optimizing digital channels to further support their clients, resulting in high digital satisfaction. J.D. Power ranked the top three firms with the highest digital satisfaction, measured across four factors: information/content; navigation; speed; and visual appeal.
Charles Schwab ranked the highest in retirement plan digital satisfaction, with a score of 753 on a 1,000-point scale. Nationwide placed second at 739, followed by Fidelity Investments in third place at 734.
Read on for the top findings fielded in J.D. Power’s study, along with why the retirement industry has had trouble elevating its digital experience.