PLANADVISER - September/October 2020 - 6

data points //
Robo-Adviser vs. Human Adviser
Which plan participants use which service?
W
e know that most retirement
plan participants need help
investing. To get that help,
they may turn to any of three options:
their plan's adviser, an automated
service through a provider or a private
adviser.
Forty percent of those who
responded to the 2020 PLANSPONSOR
Participant Survey, fielded September
10 through 16, use either a human or a
" robo " -adviser for assistance with their
defined contribution (DC) employer
retirement plan assets.
Thirty percent of respondents
with human advisers and 10% with
robo-advisers made no changes to
their retirement plans in the last 12
months. Fewer participants with a
human adviser likely made changes
to their plan because their ages
were skewed closer to retirement
age. Thirty percent of people with a
human adviser were 50 or older, while
only 15% with a robo-adviser were 50
or older.
Respondents who use a human
adviser vs. a robo-adviser expect to
retire at a younger age-i.e., 42% vs.
33% plan to retire by 65. They also have
higher total retirement savings-48%
vs. 35% have saved over $250,000.
Human advisers may find room
to grow if they can cater to current
market segments that appear to be
doing well with robo-advisers. Sixtyone
percent of respondents who rely
on robo-advisers were ages 23 through
39, vs. 35% who use a human adviser.
Also, a larger proportion of respondents
who
use
robo-advisers
are
minorities-e.g., 18% Hispanic and
13% Black-compared with 10% and
6%, respectively, who have human
advisers. This suggests advisers may
have success with Millennial or early
Generation Z savers and minority
groups. Further, 23% of respondents do
not currently work with an adviser but
say they plan to in the future.
-Angela Marinakis
Use the Services of a Financial Adviser
l Yes, human adviser
l Yes, robo-adviser
l No, but plan to
l No
l Unsure
Expected Retirement Age
n Use a human adviser
n Use a robo-adviser
38%
27%
16%
<60 years
15% 17%
62.5 years
65 years
28%
13% 16% 17%
67.5 years
13%
>70 years
Retirement Plan Actions Taken in the Last 12 Months
Human Adviser Robo-Adviser
43%
16%
15%
14%
9%
8%
Increased contribution rate
Changed investments
Rebalanced to match target allocation
Calculated retirement savings needs using online tools
Stopped contributing to the plan
Decreased contribution rate
No changes
30%
Retirement Savings Across All Designated Accounts
n Use a human adviser
n Use a robo-adviser
39% 53%
11% 13%
<$50,000
48%
35%
$50,000-$250,000
Source: 2020 PLANSPONSOR Participant Survey
>$250,000
7%
30%
23%
30%
10%
48%
11%
24%
10%
17%
13%
10%
6 | planadviser.com September-October 2020

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PLANADVISER - September/October 2020

Table of Contents for the Digital Edition of PLANADVISER - September/October 2020

A Careful Inspection
2020 PLANADVISER Retirement Plan Adviser Survey
Keeping Clients Safe
Cures for Virtual Meeting Fatigue
Inflation Protection For DC Investors
How to Show Your Worth
Never Too Late
A Return to Rollover Advice
Whether—And How—To Vote Proxies
PLANADVISER - September/October 2020 - Cover1
PLANADVISER - September/October 2020 - Cover2
PLANADVISER - September/October 2020 - 1
PLANADVISER - September/October 2020 - 2
PLANADVISER - September/October 2020 - 3
PLANADVISER - September/October 2020 - 4
PLANADVISER - September/October 2020 - 5
PLANADVISER - September/October 2020 - 6
PLANADVISER - September/October 2020 - 7
PLANADVISER - September/October 2020 - 8
PLANADVISER - September/October 2020 - 9
PLANADVISER - September/October 2020 - 10
PLANADVISER - September/October 2020 - 11
PLANADVISER - September/October 2020 - A Careful Inspection
PLANADVISER - September/October 2020 - 13
PLANADVISER - September/October 2020 - 14
PLANADVISER - September/October 2020 - 15
PLANADVISER - September/October 2020 - 2020 PLANADVISER Retirement Plan Adviser Survey
PLANADVISER - September/October 2020 - 17
PLANADVISER - September/October 2020 - 18
PLANADVISER - September/October 2020 - 19
PLANADVISER - September/October 2020 - 20
PLANADVISER - September/October 2020 - 21
PLANADVISER - September/October 2020 - 22
PLANADVISER - September/October 2020 - 23
PLANADVISER - September/October 2020 - 24
PLANADVISER - September/October 2020 - 25
PLANADVISER - September/October 2020 - Keeping Clients Safe
PLANADVISER - September/October 2020 - 27
PLANADVISER - September/October 2020 - 28
PLANADVISER - September/October 2020 - 29
PLANADVISER - September/October 2020 - Cures for Virtual Meeting Fatigue
PLANADVISER - September/October 2020 - 31
PLANADVISER - September/October 2020 - 32
PLANADVISER - September/October 2020 - 33
PLANADVISER - September/October 2020 - Inflation Protection For DC Investors
PLANADVISER - September/October 2020 - 35
PLANADVISER - September/October 2020 - How to Show Your Worth
PLANADVISER - September/October 2020 - 37
PLANADVISER - September/October 2020 - Never Too Late
PLANADVISER - September/October 2020 - 39
PLANADVISER - September/October 2020 - 40
PLANADVISER - September/October 2020 - 41
PLANADVISER - September/October 2020 - A Return to Rollover Advice
PLANADVISER - September/October 2020 - Whether—And How—To Vote Proxies
PLANADVISER - September/October 2020 - 44
PLANADVISER - September/October 2020 - Cover3
PLANADVISER - September/October 2020 - Cover4
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