PLANADVISER - March/April 2022 - 6

data points //
and employers who want to help
participants get on track. It also implies
ample opportunity for advisers, as
only half (51%) of participants work
with one. Just 30% work with a human
adviser, and 12% use robo-advisory
services. More than one-quarter (27%)
do not currently work with an adviser
but note that they plan to.
Diving deeper into the data also
gives employers and advisers insight
into what they can discuss with
participants. Much has been made of
the competitive recruiting landscape
and the need to retain employees,
sometimes leading to conversations
about how to compete with benefits.
When asked about trade-offs,
Americans-both those employed and
unemployed-showed preferences for
guarantees and dollars now, instead of
benefits later. For instance, 61% would
prefer a $10,000 contribution into their
401(k) account instead of guaranteed
lifetime payouts of $250 per month
($3,000 a year) beginning at age 65. This
might be surprising to advisers who
realize the value of that guaranteed
lifetime income, and it shows the
importance of explaining retirement
income and protecting assets.
Another preference was a
guaranteed 3% return over a marketbased
return that might greatly exceed
3% but also could lose money. Lower
fees and " below average " returns were
preferred to higher fees with the hope
of " above average " returns.
For advisers, recognizing the
trust employees place in them, along
with understanding the responses
to the trade-offs, could inspire
communications that explain the value
of each option.
" Creating interactive content
can help engage the participant and
explain the more complex solutions
or offerings, " says Deepak Agrawal,
vice president of digital strategy and
wealth management, U.S. Canada and
global fintech, at Franklin Templeton
in San Mateo, California.
That type of content can lead to
more engagement and proper decisions
by participants, Agrawal notes. " It can
be a specific call to action, based on the
unique profile of an individual. " -PA
61%
Receive a one-time
$10,000 contribution
into your
401(k) account
Source: 2021 PLANSPONSOR Participant Survey
39%
Receive guaranteed
lifetime payments of
$250/month starting
at age 65
Hypothetical Trade-Off Scenarios
Respondents, some unemployed, were presented with a series of pairs of options
and asked to select their preference in each.
52%
Receive a one-time
$5,000 bonus
48%
Receive a one-time
$5,000 contribution
to your 401(k)
account
60%
Be promised a
guaranteed 3%
annual return
40%
Be promised a
market-based return
that might greatly
exceed 3% but could
also lose money
56%
Pay lower fees and
accept " below
average " returns
44%
Pay higher fees
in hopes of receiving
" above average "
returns
52%
Have your monthly
health insurance
premiums reduced
by $300
48%
Have your monthly
employer contribution
to your 401(k) account
increased by $300
6 | planadviser.com March-April 2022
http://www.planadviser.com

PLANADVISER - March/April 2022

Table of Contents for the Digital Edition of PLANADVISER - March/April 2022

A Digital Divide
Staying Power
The Prospects of Staying Virtual
Another Retention Tool
Is It Time to Let Go?
The Evolving Use of RFPs
Best Interest Reasons For a Rollover
Guaranteed Lifetime Income
PLANADVISER - March/April 2022 - C1
PLANADVISER - March/April 2022 - FC1
PLANADVISER - March/April 2022 - FC2
PLANADVISER - March/April 2022 - C2
PLANADVISER - March/April 2022 - 1
PLANADVISER - March/April 2022 - 2
PLANADVISER - March/April 2022 - 3
PLANADVISER - March/April 2022 - 4
PLANADVISER - March/April 2022 - 5
PLANADVISER - March/April 2022 - 6
PLANADVISER - March/April 2022 - 7
PLANADVISER - March/April 2022 - 8
PLANADVISER - March/April 2022 - 9
PLANADVISER - March/April 2022 - 10
PLANADVISER - March/April 2022 - 11
PLANADVISER - March/April 2022 - 12
PLANADVISER - March/April 2022 - 13
PLANADVISER - March/April 2022 - 14
PLANADVISER - March/April 2022 - 15
PLANADVISER - March/April 2022 - 16
PLANADVISER - March/April 2022 - 17
PLANADVISER - March/April 2022 - A Digital Divide
PLANADVISER - March/April 2022 - 19
PLANADVISER - March/April 2022 - 20
PLANADVISER - March/April 2022 - 21
PLANADVISER - March/April 2022 - 22
PLANADVISER - March/April 2022 - 23
PLANADVISER - March/April 2022 - Staying Power
PLANADVISER - March/April 2022 - 25
PLANADVISER - March/April 2022 - 26
PLANADVISER - March/April 2022 - 27
PLANADVISER - March/April 2022 - 28
PLANADVISER - March/April 2022 - 29
PLANADVISER - March/April 2022 - The Prospects of Staying Virtual
PLANADVISER - March/April 2022 - 31
PLANADVISER - March/April 2022 - Another Retention Tool
PLANADVISER - March/April 2022 - 33
PLANADVISER - March/April 2022 - Is It Time to Let Go?
PLANADVISER - March/April 2022 - 35
PLANADVISER - March/April 2022 - The Evolving Use of RFPs
PLANADVISER - March/April 2022 - 37
PLANADVISER - March/April 2022 - 38
PLANADVISER - March/April 2022 - Best Interest Reasons For a Rollover
PLANADVISER - March/April 2022 - Guaranteed Lifetime Income
PLANADVISER - March/April 2022 - C3
PLANADVISER - March/April 2022 - C4
https://www.planadviserdigital.com/planadviser/industry_leader_awards_2022
https://www.planadviserdigital.com/planadviser/march_april_2022
https://www.planadviserdigital.com/planadviser/january_february_2022
https://www.planadviserdigital.com/planadviser/november_december_2021
https://www.planadviserdigital.com/planadviser/september_october_2021
https://www.planadviserdigital.com/planadviser/july_august_2021
https://www.planadviserdigital.com/planadviser/may_june_2021
https://www.planadviserdigital.com/planadviser/march_april_2021
https://www.planadviserdigital.com/planadviser/january_february_2021
https://www.planadviserdigital.com/planadviser/november_december_2020
https://www.planadviserdigital.com/planadviser/september_october_2020
https://www.planadviserdigital.com/planadviser/july_august_2020
https://www.planadviserdigital.com/planadviser/may_june_2020
https://www.planadviserdigital.com/planadviser/march_april_2020
https://www.planadviserdigital.com/planadviser/january_february_2020
https://www.planadviserdigital.com/planadviser/november_december_2019
https://www.planadviserdigital.com/planadviser/september_october_2019
https://www.planadviserdigital.com/planadviser/july_august_2019
https://www.planadviserdigital.com/planadviser/may_june_2019
https://www.planadviserdigital.com/planadviser/march_april_2019
https://www.planadviserdigital.com/planadviser/january_february_2019
https://www.planadviserdigital.com/planadviser/november_december_2018
https://www.planadviserdigital.com/planadviser/september_october_2018
https://www.planadviserdigital.com/planadviser/july_august_2018
https://www.planadviserdigital.com/planadviser/may_june_2018
https://www.planadviserdigital.com/planadviser/march_april_2018
https://www.planadviserdigital.com/planadviser/january_february_2018
https://www.planadviserdigital.com/planadviser/november_december_2017
https://www.planadviserdigital.com/planadviser/september_october_2017
https://www.planadviserdigital.com/planadviser/july_august_2017
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