As more and more people manage their retirement accounts online, some companies are standing out among their competition in delivering user-friendly account management tools to their customers, according to a new J.D. Power report.
Overall, however, companies aren't doing enough to provide customers with a user-friendly experience, according to the report.
J.D. Power found overall satisfaction was down 12 points this year, with 63% of retirement plan investors saying they faced challenges managing their accounts digitally. Only 37% of respondents said they could manage their accounts digitally without contacting customer service.
“Retirement investors are under a great deal of financial stress right now and they are looking to their plan’s websites and apps for information and guidance,” Mike Foy, senior director and head of wealth intelligence at J.D. Power, said in a prepared statement. “Unfortunately, many are not finding what they need and end up having to call customer service for help."
The U.S. Retirement Plan Digital Experience Study, formerly known as the U.S. Retirement Plan Participant Satisfaction Study, measured customer satisfaction across four factors: information/content, navigation, speed and visual appeal.
This year’s study was based on the responses of 7,069 retirement plan participants and was conducted in May and June.
Overall customer satisfaction rose 178 points when investors believed their retirement plan's websites and apps offered them proactive guidance and help, yet just 22% of firms evaluated met this key performance indicator.
"This is a moment-of-truth opportunity for plan providers," Foy said. "When they get the digital experience right, they see a very significant lift in the likelihood to grow and retain participant assets long after they have left their current employer.”
Here, in ascending order, are the companies that received the highest satisfaction ratings for their online retirement account offerings:
10. TIAA
TIAA, which provides financial services to those employed in the academic, research, medical, cultural and governmental fields, gives plan participants links to its free Advice Express portfolio recommendations. ONline tools also offer financial education topics, such as whether or not to pay off a mortgage early or invest the money instead.
9. Nationwide (tie)
The company's mobile app provides plan participants with around-the-clock ability to pay bills and access policy documents and ID cards.
9. MissionSquare Retirement (tie)
The company serves more than 1.5 million participant accounts and about 9,800 plans nationwide. Its website provides links to a market volatility resource center, a retirement account digital resources and a financial wellness center.
7. Ascensus
The Dresher, Pa.-based company offers 529 education savings, retirement and health savings account (HSA) plans, and ABLE plans for individuals with disabilities. On its website, the company says that its platforms are designed to deliver flexibility, scalability, security and cost-efficiency.
6. Capital Group/American Funds
Founded in 1931, Capital Group is a privately held company headquartered in Los Angeles, and is the home of American Funds. On its website, the firm states that its investment philosophy is based on bottom-up portfolio management and in-house research to achieve long-term investment results.
5. T. Rowe Price
The company offers funds, subadvisory services, separate account management and retirement plans and services for individuals, institutions and financial intermediaries. On its website, the firm provides investors with personalized links to tasks for achieving the goals they want to accomplish.
4. Fidelity Investments
Fidelity's website provides retirement plan investors with a retirement preparedness scoring tool, robo-advisor solutions and professional insights on topics ranging from cyber security to the tax planning implications of the Social Security's 8.7% cost-of living-adjustment for 2023.
3. Prudential Financial
The Prudential homepage provides visitors with links to a financial future assessment that takes only minutes to do and an online financial action plan they can create themselves or with professional assistance.
1. Charles Schwab (tie)
On the company’s website, Schwab invites visitors to “take your trading to the next level” through tools and access to its StreetSmart Edge desktop platform. The company also offers a robo-advisor that helps with portfolio management. The firm provides website visitors with client relationship summaries and a link to Finra's BrokerCheck website.
1. Bank of America (including Merrill) (tie)
On Merrill’s home page, the company provides visitors with a link to market briefs offering the latest insights into inflation, interest rates, volatility and their investments. The company's online offerings also include the tax implications of financial decisions and a tool to assess retirement preparedness.
