Top Plan Sponsor Concern Shifts from Reducing Costs to …

401k, retirement, Fidelity, advisors

They like advisors, to a point.

Employers are more worried about whether their retirement plan is effectively preparing employees for retirement. It’s a distinct change from 2017, when the focus was on reducing business costs related to the plan, according to Fidelity Investments’ annual plan sponsor attitudes study.

It surveyed employers that use a wide variety of recordkeepers and have at least 25 participants and $10 million in plan assets.

Fidelity found that more plans than ever (92 percent) use plan advisors, and the number of plan sponsors actively looking to switch their plan advisors (22 percent this year), while historically high, is down considerably from an all-time high of 38 percent last year.

While last year’s potential regulatory changes were top of mind for plan sponsors, this year, the top reason they hired advisors was to help improve their plans.

Given plan sponsors’ focus on retirement readiness, the Boston investment behemoth notes that plan advisors can add value by sharing knowledge and opportunities to help plan participants reach their goals in retirement:

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