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What Are Plan Sponsors Worried About?

Industry Trends and Research

Advisors might be most concerned about client retention – but what are those clients concerned about?

Advisors participating in the nation’s retirement plan advisor convention brought a lot to the sessions, networking, and – once again, shared valuable insights via an exciting new medium: the NAPA 401(k) SUMMIT Insider.  

But if advisors are being confronted with a host of new challenges, the plan sponsors they support – at least in the eyes of their advisors – are still, mostly, dealing with classic issues.  

Asked to pick the three most significant concerns for their plan sponsor clients, administrative burdens/complexity outpaced other concerns, though financial wellness – a new category this year – came in second, cited by 13%.

But close after that came the traditional concerns; savings/deferral rates, participation rates and plan administration costs dominated the choices, with investment fees (7%), cybersecurity (6%) and helping older workers plan for decumulation weren’t far behind.

Student debt – a new category this year – drew the support of just 6%, while concerns about non-discrimination tests was down considerably from a year ago.

Cybersecurity, a relatively new concern was a close fourth – though it came in higher (second place) according to advisors who primarily worked among plans above $100 million in assets – pushing aside participation rates.

Next Up:  TPA Relationships