Retirement plan confusion creating advisor opportunities
Retirement plans are getting more confusing, but that could be a good thing for financial advisors, according to a Fidelity Investments study released Monday.
Fidelity characterized 2023 as a “year of opportunity” for the retirement plan industry in its 14th annual Plan Sponsor Attitudes Study. In other words, the asset manager is putting a positive spin on rising plan complexities that are creating ways to increase advisor impact.
Fidelity’s study found that plan sponsors are relying on advisor guidance more than ever, with only 6% not using an advisor or consultant. As a result, advisors will be able to demonstrate their knowledge base to plan sponsors in the market for their services.
And according to the study, there are indeed opportunities out there for advisors to show their skills. Although 76% of sponsors were extremely satisfied with their current plan advisor, 22% reported they were actively looking to switch, the study said.
The study is based on an online survey conducted in March of 1,351 employers offering retirement plans using a wide variety of record keepers. Fidelity Investments was not identified as the survey sponsor.
“While we see the relationships between plan sponsors and plan advisors evolving, employee communication and education remains at the forefront, with sponsors looking to advisors to offer a more holistic experience,” Liz Pathe, head of defined contribution investment only sales at Fidelity Institutional, said in a statement.
Pathe added that advisors have an opportunity to showcase their impact and service-centered mindset as a result of the evolution that’s occurred in plan designs, investment lineups and benefit offerings.
In terms of complexity, the study revealed that investment
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