Retirement Plans: Plan Sponsor Attitudes

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What are your priorities for your company's retirement plan in the coming year? Want to better understand what other Plan Sponsors have as their top initiatives?

We are sharing some great insights made available through Fidelity's Plan Sponsor Attitudes study which examines plan sponsors' priorities. This is based upon interviews with more than 9,500 sponsors.  

Six out of ten (or 61%) of Plan Sponsors evaluate their Plan Advisor annually. The top two factors sponsors consider when choosing an advisor:

  • #1. Retirement plan expertise, ranked #1 by 34% of survey respondents
  • #2. Investment knowledge, ranked #2 by 31% of survey respondents

Retirement readiness remains a big focus of plan sponsors. Sponsors were asked if they believed their participants were on track with retirement savings.  

  • 59% said yes
  • 29% said no
  • 12% said unsure

Related to this, when asked how many participants are delaying retirement due to lack of savings, 60% of sponsors reported they had some participants delaying. Plan Sponsors also feel the effects of participants delaying retirement through increased health care costs.  

The responsibilities of most plan sponsors have broadened to a full benefits offering, with a split focus between health care and retirement benefits. Sponsors were asked which benefit was the most important focus for their company with 49% reporting health benefits and 41% reporting retirement benefits.  

With the top focus being health care, Fidelity asked what is being done to address rising health costs:

  • 48% are implementing wellness programs to help workers improve or track their health
  • 46% are making changes to their health plan to lower company premiums
  • 37% are having employees pay more for their health care
  • 30% are reducing other benefit plan costs or company retirement contributions
  • 11% reported they are doing nothing 

Health Savings Accounts, Financial Wellness programs, and Student Loan Repayment programs are top areas of interest as participants are increasingly looking for guidance on these benefits.  

At Allied we are committed to driving successful retirement plan outcomes. As the economic landscape, fiduciary environment, and investment options all become more complex, we partner together with you as a Plan Sponsor to help more participants become prepared for retirement.  

Please reach out to our team with any questions.

The information published herein is provided for informational purposes only and does not constitute an offer of investment advisory services. All information is subject to change without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. These opinions may not fit to your risk and return preferences. Investment recommendations may change and readers are urged to check with their investment advisors before making any investment decisions. Information provided is obtained from sources believed to be reliable, but we cannot attest to its accuracy. Past performance is not necessarily indicative of future returns. Investment advisory services are offered through Allied Investment Advisors, a Registered Investment Adviser.