Retirement Plan Sponsor Series: Professional Advisors Help Boost Contribution Levels
Retirement Outcomes plans sponsors enjoy are attributable in part to plan design changes to their Professional Advisor recommends. Design changes draw more employees into the plan and help convince them to raise contributions closer to levels needed to achieve retirement success.* Plans that work with a specialist Advisor are more successful at increasing deferrals. Among plans that partner with a Professional Retirement Plan Advisor who works exclusively with retirement plans, 83% have experienced deferral rate increases in the last two years-and one-third of those have enjoyed a deferral rate increase of 6% or more.
*Retirement Advisor Council – Enhancing Retirement Readiness: Consensus on a Course of Action recommends consistent contribution levels in the rage of 10% to 16% of pay over a 30-year or 40-year career.
These compelling numbers testify to the participant outcome enhancements Professional Retirement Plan Advisors enable. Illustration of the difference a Professional Advisor can make on personal retirement readiness already existed in the form of plan-level case studies; *we now have evidence at the macro level that the profession is making a difference on the population as a whole. Fully three-quarters of a plan sponsors partnering with a Professional Retirement Plan Advisor estimate 50% or more of their participants are on track to achieve a successful retirement.
*Retirement Advisor Council, “Smart Plan Design Contains Plan Costs and Improves Outcomes – case Study: Billy Bob and Bobby Jean Restaurants,” p.4, www.retirementadvisor.us