Does the higher education, 403(b) market offer insights that 401(k) plans should follow, as well opportunities for 401(k) advisors? According to a study by Transamerica, higher ed deferral rates are 13.4% — compared with an average of just over 6% for 401(k) plans. Transamerica attributes the results to more face-to-face meetings at these institutions of higher learning.
Yet only 42% of those 403(b) plans use an outside advisor or consultant, compared with 85% by 401(k) plans, according to a recent Fidelity study. Traditionally, providers have sent their own reps, but Transamerica predicts that more 403(b) plans will be hiring outside advisors to help participants.
Roles played by advisors in these plans include:
• Selecting investment options
• Monitoring investments
• Plan design
• Creating IPSs
• Vendor selection
• Compliance
Sounds like 401(k) advisors would be eminently qualified.
