By Lisa Barron
Most retirement plan sponsors
gauge the success of their plans by whether participants can, in fact, retire successfully, but they don’t believe their financial professionals apply the same standard, according to research from the Principal Financial Group.
A survey by Principal found that nearly two-thirds, 63 percent, of employers measure success by their employees’ abilities to stay on track for a successful retirement, but less than half say their financial professionals attach the same importance to that outcome.
“This is a clear opportunity for financial professionals to demonstrate their value,” said Tim Minard, senior vice president, The Principal. “By expanding their focus and diving deeper into plan evaluation, financial professionals can build stronger practices and create loyal followings of highly satisfied clients
The survey also showed that plan sponsors think their financial professionals are more focused on having a high participation rate (64 percent) and an attractive fund line-up (63 percent) than plan outcomes.
In addition, plan sponsors are overwhelmingly (76 percent) open to consulting with financial professionals on plan design to help improve participant outcomes. Two-thirds expect their financial professionals to be aggressive in promoting outcome-focused retirement planning.
“Financial professionals who focus on fees, funds and fiduciary responsibility may not be focusing enough on participant outcomes,” said Minard. “The survey shows that plan sponsor clients — and prospects — want to work with financial professionals who are as concerned as they are about the end game: how well participants will be prepared to afford a comfortable retirement
The online survey of 283 retirement plan sponsors was conducted by Brightworks Partners on behalf of Principal.
Originally published on BenefitsPro.com