More than 20% of workplace savings plans offer an SDBA along with their other benefits, according to Fidelity internal data. The number of employers that offer self-directed brokerage accounts is up three times over 2010, the company said. Fidelity published predictions in January about how employers might respond to employees’ changing needs as they adjust to yet another new normal.
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“As more workers express interest in specific investments for their retirement savings, a growing number of employers are adding a self-directed brokerage window to their workplace savings plan,” according to the release.
Fidelity based its predictions on “conversations with thousands of employers from a variety of industries,” and found that they are increasingly considering diversity and inclusion in their benefits decisions.
Some other trends Fidelity expects to see from employers this year include:
- Community involvement. The piling on of crises during 2020 spawned countless memes and at least two TV specials bidding farewell to a historically bad year. A more productive outcome, though, is increasing interest from companies in actively supporting people in their communities. “Many of the events of 2020, including the pandemic, natural disasters, and social justice issues, have prompted an increasing number of employers to consider adding a workplace giving program to their benefits platform,” according to Fidelity.
- Caregiver support. Female workers are most likely to be impacted by caregiving responsibilities, and a Fidelity survey in January 2020 (before the pandemic) found 39% of women were thinking about leaving a job to take care of a family member. Employers are considering enhanced benefits like paid leave for elder care, support groups and child care to help retain these employees.
- Support for remote workers. While transitioning massive shares of their workforce to remote offices allowed many companies to stay in business, and let those workers keep their jobs, it still created a lot of stress for workers. Fidelity believes that many employers will continue allowing remote work, and will focus on providing benefits that specifically address their emotional and mental health. The company also anticipates more employers deprioritizing benefits that only benefit people in an office, like parking or meals and snacks.
Related:
- Why Student Loan Help is the ‘It’ Employee Benefit for 2021
- Massive Increase in Corporate Focus on Employee Health, Well-Being
- Benefits That Employees (Really) Want in 2021
Danielle Andrus works as an editor for The Financial Planning Association® (FPA®). Over the past 15 years, she has worked in various capacities, including writing and editing. Andrus has worked for several notable publications and outlets and spent more than seven years as the executive managing editor at ALM Media, publisher of Investment Advisor magazine and ThinkAdvisor.com. Before that, she was online editor for Summit Professional Networks, where she oversaw newsletter development for four magazines, including Benefits Selling, Senior Market Advisor, Boomer Market Advisor, and Bank Advisor.
