Retirement Advisor Council: The Retirement Plan Sponsor

Enhancing the retirement preparedness of plan participants is a primary objective of many plan sponsors. Increasingly, sponsors look to their Advisor and service provider to keep participants apprised of personal progress toward achieving retirement readiness. The study provides evidence partnering with an Advisor entirely dedicated to retirement plans may confer plan sponsors an edge: The vast majority of participants in plans that partner with such an Advisor receive an indicator of their personal retirement readiness. Going one step further, most sponsors partnering with an Advisor entirely dedicated to the retirement plans business have already received a report aggregating the retirement readiness of their entire participant population at least once. An overwhelming majority of plan sponsors who have received a plan-level retirement readiness report have taken action based on this report to enhance retirement outcomes. Steps include improving participant understanding through education and communication, changing the employer contribution formula, increasing the default contribution level for automatically enrolled employees, or implementing automatic deferral increases. More than 40% of plans with a Professional Retirement Plan Advisor retain their Advisor to meet one-on-one with employees to provide investment advice.

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Plan Study Sponsors:

Fidelity Investments

Franklin Templeton Investments

MFS Funds

Mass Mutual Financial Group

Principal Financial Group

John Hancock Investments

TransAmerica Retirement Solutions

Source : Retirement Advisor Council