Nearly two-thirds of defined contribution plan sponsors use social media as a regular source of information for 401(k) plans and the providers that serve this market.
According to Cogent Research, while many providers dedicate more time and money to more traditional forms of communication and outreach, such as email or direct contact with an advisor or firm representative, plan sponsors are more often linking to plan providers through websites or blogs, LinkedIn and Facebook to share or seek news and opinions related to 401(k) plans and providers.
The Fourth Annual Retirement Planscape 2013 study surveyed 1,500 DC plan sponsors across all plan sizes and industries.
The use of social media for 401(k) information was highest among mid-sized plan sponsors, who represent plans with total assets of between $20 million and $100 million. Within this segment, 77 percent of plan sponsors utilize some form of social media for 401(k) informational purposes, with nearly half (47 percent) reporting regular use of provider websites or blogs. LinkedIn is the second most popular channel among mid-sized plan sponsors, cited by 39 percent of respondents.
Cogent's study found the use of social media among 401(k) sponsors was lower among plans with higher asset levels, with just half of plan sponsors representing plans with greater than $100 million utilizing social media for information related to 401(k) providers.
Cogent Research provides custom research, syndicated research products, and evidence-based consulting to leading organizations in the financial services, life sciences, and consumer goods industries.