Plan sponsors view advisor value as a combination of service and cost, with their top priorities including improving participant outcomes, boosting employee satisfaction and optimizing plan design to meet evolving company needs, according to Fidelity’s 2025 plan sponsor attitudes survey.
Sponsors are looking for tangible results, including higher employee participation, increased savings rates and smarter asset allocation, said the report. About three-quarters of those who felt participants are saving enough for retirement reported a high level of satisfaction with their advisors, compared with 58% of those who are concerned their employees are not saving enough.
However, fewer plan sponsors this year agree their participants are saving enough money for retirement compared to four years prior. Plan participants are finding it increasingly difficult to save more for retirement due to living expenses, health care costs, education expenses/loans, lack of education, lack of discipline and distrust of financial markets.
Among the resources plan sponsors want from advisors are content and education about financial planning, financial wellness and retirement income. About one-third of plan sponsors said they are interested in targeted education meetings for newer employees.
Plan sponsors largely believe that financial wellness programs are very impactful and 93% have implemented one, but Fidelity’s research revealed that only half of employees are currently enrolled in such programs. A large percentage of those who have implemented a financial wellness program did so within the past year.
About half of plan sponsors said the pace of change in retirement plans is exhausting, and advisors can bring value by helping them understand and adjust plan designs to meet the changing needs of participants. With Secure 2.0 legislation requirements drawing nearer, plans sponsors are shifting their focus from enhancement to compliance. In addition, plan sponsors are navigating new products and investment options, including retirement income products, health savings accounts, managed accounts, collective investment trusts, new target date funds and pooled employer plans. Advisors play a key role in providing expertise and insights to help them develop a tailored retirement benefit that meets their employees’ needs, said Fidelity.
“We’re seeing plan sponsors seek more engagement from their advisors to impact participant saving and engagement, especially through financial planning and wellness programs,” said Christopher Alpaugh, head of Defined Contributions Investment Only Sales Group at Fidelity Investments. “With investment menu options and compliance policies quickly evolving, it’s not surprising that sponsors are leaning on their advisors to be the steady hand helping keep participant success in focus.”
Slightly more than one-third of plan sponsors said they plan to conduct an advisor search. The top factors they consider when taking advisor search meetings are 401(k) plan knowledge, fiduciary responsibility and fees.
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