A new study finds that nearly 6 in 10 defined contribution advisors (58%) agree that the COVID-19 pandemic is thwarting the growth of their DC business.
Consequently, as new RFP activity remains largely on hold, DC specialists are working overtime to guide their existing clients through the pandemic, according to findings from Retirement Plan Advisor Trends, an annual Cogent Syndicated study from Escalent.
DC advisors are also fielding ever-growing demands from plan participants in response to the COVID-19 pandemic, according to the study, which examines the role of advisors across all channels, with a focus on retirement plan specialists managing over $50 million in DC plan assets.
“In stark contrast to their peers, DC specialists are increasing the assistance they’re offering to plan participants in assessing rollover and distribution options, long-term financial planning, one-on-one investment advice and retirement income strategies,” says Sonia Davis, senior product director at Escalent. “Moreover, they cite a sizable uptick in providing plan sponsors with regulatory updates and consulting with clients on plan design, services and features.”
And in keeping with the heightened focus on client service and support, the latest findings reveal that DC advisor expectations of providers are also evolving, underscoring the value of firms developing effective DC advisor outreach and engagement strategies.
“These are extraordinarily complex times for anyone to navigate financially, including the most seasoned DC advisors,” emphasizes Linda York, senior vice president at Escalent. “Firms must remain fixated on providing superior participant education, regulatory guidance and plan design options, as the support rendered throughout the pandemic will undoubtedly fuel future client recommendations for years to come.”
According to the study, a handful of DC plan providers have differentiated themselves, earning strong, positive recall among DC specialists for their COVID-19-related information and content. To that end, the study shows that the top 10 firms for COVID-19 communication recall include:
- American Funds
- Vanguard
- Fidelity Investments
- Merrill/Merrill Edge
- Alliance Benefit Group
- ADP Retirement Services
- Empower Retirement
- Capital Group
- Principal Financial Group
- T. Rowe Price
Base: DC Specialists (Plan Advisors with $50M+ in DC AUM)
Source: Escalent. Cogent Syndicated. Retirement Plan Advisor Trends™, September 2020.
