Overall, satisfaction with advisors runs high. Nine in 10 sponsors assess the cost and benefits of working with an advisor as valuable (93 percent) and are satisfied overall with their advisor (94 percent), 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.
Switching Advisors
However, the good vibrations can quickly turn bumpy as the study finds that 35 percent of sponsors have switched advisors in the past. Among sponsors who changed advisors, 41 percent did so because they judged their advisor as failing to provide adequate support. Complaints about advisors included a lack of involvement or interest in the plan, not being knowledgeable, being difficult or being unresponsive, according to the study.
Other reasons for switching advisors were costs and fees (17 percent), a change in the company’s management or ownership (15 percent), wanting better service (11 percent), a better plan and/or investments (7 percent) and poor performance and returns (6 percent).
Additional Opportunities
Not all of the sponsors who responded to the study currently use an advisor. However, 43 percent of such sponsors would be open to working with an advisor during their scheduled plan review and 35 percent said they would be open to doing so at any time, according to the study.
“The retirement plan business is all about solving problems,” Foster said. “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.”