So, the end of the first quarter of 2022 may still be a couple of weeks off—but this week we took a quick peek inside those planning folders and PowerPoints…
As for what’s on those agendas:
77% - Market volatility
65% - Inflation
65% - Impact of Russia/Ukraine conflict
46% - Financial wellness
35% - Litigation
27% - ESG
12% - New RMD rules
Other items of focus cited were: Year-end and what is happening, fiduciary document review–annual checkup, CalSavers state program and new 2022 IRS contribution and benefits limits, SCOTUS ruling on NW University lawsuit, employee education, fiduciary training, plan fee reviews, QDIA review—oh, and of course, investments.
One reader commented, “Fiduciary training for some. Plan design discussion for many.”
As for the sense of the meetings ahead, “It’s great to see clients again, you get so much more when face to face...” observed one reader.
“Most plan sponsors and committee meeting members have been more desirous for connection with us as fellow human beings. While they are still appreciative of what we do for them, the importance of all the X’s and O’s of the retirement plan haven’t been the main thing (still a thing, but not the main thing). That shift has been nice.”
As for the future, “Will do at least one (maybe two) quarterly meetings a year virtually going forward,” noted one reader.
“More meetings are being held via Zoom but are still as effective,” commented one. “We give our clients the flexibility in terms of meeting in-person vs. virtual meetings,” said another. “Retirement income is becoming a hot topic, primarily because vendors all have products to sell,” added another.
‘Want’ Ed?
But—asked which of those potential/planned topics were the one that their committees would want to talk about—well, the dominant two were arguably interrelated: market volatility and the impact of Russia/Ukraine conflict, both drawing 35%.
Financial wellness, at 12%, was a distant third, followed (even more distantly) by inflation (about 8%), with litigation bringing up the focus “rear” at just about 4%.
Inflation Airing?
But even if it wasn’t a big focus for committees, we asked if inflation had made its way into participant education messages and—for the very most part the answer was…
46% - Yes, but it’s not new.
38% - Yes, recently.
12% - Not yet.
4% - No.
Then, on a related note, readers have been curious about the status of the return to the office—and here too the picture was mixed.
46% - Yes, for some time now.
27% - Yes, but we never left.
15% - Not yet.
8% - Yes, but only recently.
4% - We’re not going back.
We also got a lot of comments about the “new” norm being hybrid—as well as others who have always been, and continue to be, remote. One reader noted, “We are now a hybrid 3 days in/2 days out office and it has been working very well. Trying to have people in on the same days works well for us.”
Asked if COVID (and/or the COVID “experience”) had changed their retirement plans, a strong majority (73%) indicated it had not—but nearly one in five said, “I’m not quite sure—but I’m thinking about it more.”
In that vein, one reader commented: “I would say that I am considering doing so earlier. Still at least 10 years out... but if the numbers got really good, I’d consider an exit and move to something else. For whatever reason, I have thought more about how much do I want to ‘put up with.’ I think about my time left on this earth and am starting to see that I don’t want to stress as much (about growing a practice).”
The rest split evenly between those who said it had changed their plans—half indicating it had accelerated their date, and the other half indicating it had delayed it.
We concluded this week’s reader poll by asking about the “big thing” that readers were taking away from the whole COVID/pandemic experience—here’s a sampling:
We will continue to do plan reviews virtually. also, we are now going after opportunities outside of our normal geographic area.
Stay focused.
Take time to enjoy what you have. You may never have it again.
Live life, enjoy life, but keep moving.
Virtual efficiency
Increased use of technology. Appreciation of the little things.
How easy it is to Zoom....
The world of work has changed permanently.
Isolation is not for me.
Face-to-face meetings, especially education meetings, are much more impactful than virtual. In-person plan reviews are much more open dialogue than virtual.
Adapting to working remotely constantly.
Use many different ways to delivery information.
Live life now.
The changing dynamic and balance between employers that would like their employees back in the office and employees that would like more flexibility in terms of where they work. We are seeing the challenge now with some of the recordkeepers we work with and “service” issues with not being adequately staffed to fill positions that have been vacated by employee resignations.
It has kept me from retirement. Now that we are starting to return, it may be time to clean out that desk and say goodbye!
It’s nice to work a few days from home as it provides a better work/life balance.
It’s been a bit of a big reset. The pause that makes you think about how tender and short life is... and are you doing something meaningful, valuable and wholehearted. I’m not thinking about fishing/golfing every day in retirement. I’m thinking more about impact... positive impact. I have a thirst to help people see life in a better light... so maybe that is part of my next chapter. (This isn’t a therapy session is it? ;) )
Thanks to everyone who participated in this—and every—week’s NAPA Net Reader Radar Poll!
p.s.: Have you registered for the NAPA 401(k) Summit? Seriously—you are not going to want to miss this one! Check it all out at https://napasummit.org.
