PLANADVISER - November/December 2017 - 19

Are
Sponsors
Satisfied?
Yes ...
And No
Most are pleased with
their adviser, yet many
are shopping around
FIDELITY Investments announced
the results of its eighth annual Plan
Sponsor Attitudes survey, which
revealed that a sizable majority of plan
sponsors (65%) are highly satisfied
with the service their advisers provide.
However, as seen in the last several
editions of the survey, Fidelity reports
that a record number of plan sponsors
are actively looking to replace their
adviser. Nearly four in 10 (38%) sponsors
suggest they are doing so, up from
30% last year. The ongoing study, which
began in 2008, surveys employers who
offer retirement plans that use a wide
variety of recordkeepers and have at
least 25 participants and $10 million in
plan assets.
Even with the strong marks from
Plan Sponsors' Chief Concerns
31%
Reducing
plan costs
23%
Managing
their fiduciary
responsibility
Source: Fidelity Investments
plan sponsor clients, this is not the
time for advisers to lie back and rest
on their accomplishments, warns
Jordan Burgess, head of specialist field
sales overseeing defined contribution
investment only (DCIO) sales at Fidelity
Institutional Asset Management.
" While most plan sponsors remain
satisfied with their advisers, they
are raising their expectations, " he
explains. " For some advisers, this
could put their business at risk. For
others, this could be an opportunity
to win new clients. "
Burgess says the data is clear:
" Successful plan advisers are those
who are aware of their dual mandate
to help plan participants achieve their
retirement outcomes, and to support
plan sponsors with the challenges
associated with offering a defined
contribution [DC] plan and other
employee benefits. "
Other findings show " reducing
business costs related to having a
plan " is the top concern for sponsors,
with 31% citing it as an area of focus.
Other important themes for plan
Sponsors' Views on Advisers
Highly
satisfied
with the
service
they
provide
65%
Source: Fidelity Investments
sponsors include managing their fiduciary
responsibility (23%), preparing
employees for retirement (22%) and
minimizing the risk of litigation and
liability (18%).
The Fidelity research highlights the
competing priorities and challenges
employers face when allocating time,
budget and resources
benefits to their employees.
to providing
" In terms of overall benefits, the
plan sponsors said health care ranks
No. 1, before retirement benefits in
order of importance, " Burgess says.
-John Manganaro
Generation Z Looks Set to Save
Working age Gen Zers-16- to 23-year-olds-upbeat on preparing for retirement
On
average,
the amount of
income they think
they should save
28%
Source: EACH Enterprise LLC
Believe it is
important
to save
83%
Want to
be more
financially
educated
76%
Think it is
important
to save for
retirement
50%
Participate
in a 401(k)
12%
38%
Actively
looking
for a
new
adviser
22%
Preparing
employees
for retirement
18%
Fighting
off litigation
planadviser.com november-december 2017 | 19
http://www.planadviser.com
PLANADVISER - November/December 2017

Table of Contents for the Digital Edition of PLANADVISER - November/December 2017
