By Marlene Y. Satter
This might be come off as one those studies with a fairly obvious conclusion but it’s always good to have hard evidence, right?
According to research by EACH Enterprise and co-sponsored by Transamerica Retirement Solutions, retirement plans that have a professional retirement plan advisor
achieve better results.
The study surveyed more than 400 retirement plan sponsors with plan assets between $5 million and $500 million, and found that, among respondents who work with a professional plan advisor, 76 percent said that more than half of their participants were on track to a successful retirement.
Also, more than 80 percent said that participant deferral rates have gone up, and 33 percent reported a deferral increase of at least six percent in the last two years.
Sponsors said that their advisors were focused on improving retirement outcomes
and retirement readiness, as well as being able to simplify plan administration — with 90 percent saying their advisors had simplified administration. Sixty percent said that they would go first to their plan advisor if a problem surfaced with administration of the plan.
Transamerica said that the study results demonstrate “that professional retirement plan advisors are central to the strategic direction, administration, and overall performance of the retirement plans they manage.”
According to Transamerica, because they are focused on improving outcomes for plan sponsors and their participants, professional plan advisors — those who work primarily or exclusively with retirement plans — use a variety of strategies, such as changing the formulas for employer matching funds, using automatic enrollment, and increasing default deferral rates to boost plan results.
“Professional retirement plan advisors add a level of expertise and knowledge that is vital to their clients,” said Stig Nybo, president of U.S. retirement strategy at Transamerica Retirement Solutions. “Their efforts have translated into measurable improvements in plan performance and retirement outcomes, and the survey results make it clear that plan sponsors
recognize the value of partnering with a retirement plan advisor.”
Good to know, right?
Originally published on BenefitsPro.com