PLANADVISER - September/October 2022 - 20

beyond 401(k) / cover story
" The demand for individualized, personalized advisory
services for plan participants has just exploded in the postCOVID
world, " Doss says. " I think people-business owners
and plan sponsors-have realized the value of advice, and
they're getting questions from their people about access to
advisory services and support in the workplace. "
A Tech-Enabled Future
According to Doss, the timing of the pandemic gave a
much-needed shock to the system while powerful new
technologies and business management philosophies were
coming to the fore. In other words, firms now have the capability
of leveraging technology to deliver tailored advisory
solutions to massive groups of plan participants, and the
leaders of retirement plan advisory firms and plan service
providers see the mass market as a source of tremendous
potential growth.
Nick Della Vedova, president of NFP Retirement in Aliso
Viejo, California, agrees, saying one certainty is that the
future of the retirement plan advisory business is going to
be tech-enabled. In terms of his own firm, Della Vedova
says, technology has already played a significant role in the
evolution of its plan advisory business.
" The accessibility to increased computing power allows
advisers to provide a higher level of analysis, which enables
them to save time and subsequently focus on participant
outcomes by providing additional value-added services,
such as financial wellness programs, " Della Vedova says.
" Funds, fees and fiduciary protocols/processes will always
be fundamental to what an advisory practice delivers, but
it's the day-to-day work that has changed over time. "
Della Vedova says NFP's clients today expect the firm
to provide advice pertaining to " all things financial, " which
now includes the entire benefits package. Notably, he
adds, the movement among many employers to use health
savings accounts as a key component of their employee
health insurance program has created a needed connection
between health and retirement benefits.
Doss agrees, and, while noting the value that mega
firms can deliver to the broader investor population, she
cites participants with a different set of financial priorities.
" As a middle- or lower-income client, a given plan participant
might not need that specialized tax planning or the
most sophisticated investment management; however,
this person very well may need our help with developing
sufficient emergency savings and understanding the right
approach to college savings and health insurance. "
The Income and Insurance Question
Individual savers, now more than ever, rely on advice delivered
in employer communications to determine where to
contribute their next dollar, Della Vedova suggests. Advisory
professionals, in response, have had to shift their
focus away from the singular topic of investment portfolios
and performance in favor of taking a broader, more
strategic view.
At NFP, this process has resulted in a business realignment
that recently saw the creation of three " distinct yet
integrated " business segments. These are property and
casualty; benefits and life; and wealth and retirement.
Explaining the rationale for this approach, Della Vedova
says NFP recognized that it is critical to evolve in ways that
make sense for the firm and the clients it serves. Put simply,
services and solutions coming from the property and casualty
business will help clients manage and mitigate risks;
the benefits and consulting services will enable employer
clients to attract and retain top talent; and, finally, wealth
and retirement will help enhance the financial wellness
and security of investors.
Similarly, DeNoyior says, firms such as Hub-with its
extensive insurance operations
that cut across workplace
employee benefits,
business risk management
and
personal
insurance
products and services-
stand in a position to bring
a " complete benefits and
risk package to both current
clients and prospects. "
" As the world becomes
more personalized, " Della
Vedova says, " our client
offerings need to follow this
trend. Being deeper and
" Being
deeper and
broader
with our
clients is
what they
demand ... "
broader with our clients is what they demand, and our
advisers can foster existing relationships with companies,
executives and employees by assessing challenges fully
and aligning them with a spectrum of personalized and
varied retirement solutions. The forward-thinking advisers
who can execute effectively on this will thrive in this new
environment. "
Naturally, DeNoyior adds, the industry will have
notable challenges to grapple with that accompany the
exciting growth opportunities up ahead. He says M&A
transactions, among other factors, will help Hub achieve
its vision and tackle those challenges.
" Pricing is another challenge, both on plan administration
and overall, " DeNoyior warns. " How do you help
companies create compelling benefits and risk packages
that help attract and retain the best employees, while at
the same time [you're] achieving scalability and a profit
margin that's sustainable? "
In addition, people in general are saving too little for
retirement. " He mentions two of the widely known issues
confounding the industry: workers without access to a
retirement or emergency savings plan who are living
paycheck to paycheck, and young employees unable to save
due to student debt. " We have to solve for these things.
An adviser who can serve both sponsor and employee
needs holistically, we think, will have an advantage.
-John Manganaro
20 | planadviser.com September-October 2022
http://www.planadviser.com
PLANADVISER - September/October 2022

Table of Contents for the Digital Edition of PLANADVISER - September/October 2022
