2020 PLANADVISER Practice Benchmarking Survey Revenue and Fees continued Average Annual Charge for Services to Retirement Plan, by Plan Size (bps = basis points) $1mm $5mm <1 bp 1 - 5 bps 6 - 10 bps 11 - 25 bps 26 - 50 bps 51 - 75 bps 76 - 100 bps >100 bps Do not service this size - 2% 1% 7% 39% 28% 6% 5% 12% - 1% 1% 27% 61% 4% 1% - 5% $20mm - 2% 13% 78% 5% - - - 2% $50mm 1% 4% 50% 34% 1% - - - 10% $100mm 1% 28% 47% 4% - - - - 20% Marketing and Service Models Which of the Following Success Measures Do You Use With Retirement Plan Clients? Participation rates Deferral rates of various employee segments External/Competitive benchmarking of plan fees External/Competitive benchmarking of plan design % of participants with " appropriate " asset allocations-e.g., close to target-date fund (TDF) glide path % of participants meeting retirement income replacement ratio goals-i.e., will replace X% of income in retirement % of participants saving to the company match % of participants who increased deferral rates in the prior 12 months % of participants meeting projected monthly retirement income goals-i.e., $X per month in retirement % of participants using advice tools/seminars offered through the plan Employee satisfaction with plan, determined through a survey Other Technology Solutions Used by Practice 2019 Videoconferencing software Customer relationship management Electronic signature software Email encryption software* Cloud-based document storage systems *E.g., ProtonMail, digital certificates, etc. - 2020 98% 93% 94% 90% 81% - - 71% 74% 2019 92% 90% - 70% 65% 63% 57% 51% 43% 44% 32% 8% 2020 90% 87% 79% 62% 61% 59% 51% 47% 38% 35% 30% 7% Importance of Wealth Management to Practice Success 2020 45% 23% 12% 14% 6% Moderately important Somewhat important Slightly important Not at all important $250mm 4% 49% 13% - - - - - 34% $500mm $1b 8% 38% 5% - - - - - 49% 17% 20% 2% - - - - - 61% Very important 22 | planadviser.com November-December 2020http://www.planadviser.com