Satisfaction runs high for retirement plan advisors.
A study by Massachusetts Mutual Life Insurance Co. (MassMutual) finds nearly nine in 10 employers who sponsor a retirement plan would recommend their financial advisor to another employer, according to the MassMutual Retirement Plan Referrals Study released Monday.
“Overwhelmingly, retirement plan sponsors are pleased with the support they receive from their financial advisor and are more than willing to tell other employers,” says Tom Foster, national spokesperson and practice management leader for MassMutual’s retirement plan services. “It’s a great opportunity for advisors who want to build their retirement practices.”
The study shows 88 percent of plan sponsors would recommend their advisor, with 37 percent saying they are very likely to do so. Only 10 percent say they were unlikely to make a recommendation.
The study polled 449 employers who sponsor retirement plans and work with an advisor with assets ranging from less than $1 million to $75 million.
Fifty-eight percent of retirement plan sponsors found their advisors through referrals.
Nine in 10 sponsors say the cost and benefits of working with an advisor are valuable, according to the study. The bigger the retirement plan in terms of assets, the more likely the sponsor is to give the advisor high marks.
Despite the high ratings, 35 percent of plan sponsors have switched advisors in the past. Among sponsors who changed advisors, 41 percent did so because they said the advisor was not providing adequate support, lacked involvement in the plan, was not knowledgeable or was unresponsive, according to the study.
“The retirement plan business is all about solving problems,” Foster says. “Advisors who are attentive and responsive, keep up with the regulatory environment and work closely with sponsors to help their employees become retirement ready have tremendous opportunities to grow in the retirement plans marketplace.”