For those plan participants who have an advisor from outside their retirement plan, the relationship seems to be a strong one, concludes Spectrem. Forty-one percent have had the relationship for three to five years, 56% have had an in-depth review of their finances within the past six months, and 45% have purchased other products from the advisor in the past year.

A total of 36% have made changes in their retirement plan investments within the past year because of advice from the outside planner, and 60% of those with $100,000 or more in retirement plan investments have done the same.

At the same time, 90% feel the outside advisor fully understands their investment objectives, 83% feel they are a more knowledgeable investors because of the advisor, and 80% feel they are earning higher returns because of the advisor.

Participants with balances in excess of $100,000 are more likely than those with lower balances to have a relationship with an out-of-plan advisor, so "providers should make specific efforts to give high balance participants access to advice," Spectrem said.

-Karen DeMasters

 

 

 

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