Advisor’s Plan Review Frequency Insufficient

Greenwald & Associates recently conducted research with 565 employers that have retirement plans with MassMutual Retirement Services. The findings indicate that 57% of plan sponsors would like their advisors to conduct semiannual, or more frequent reviews, but only 44% do this. Sponsors also would like to see more focus placed on what they consider important.

Tom Foster, practice management leader for MassMutual stated, “Frequent, focused plan reviews are essential to assess the ongoing effectiveness of a retirement plan and to help ensure that plan participants are saving enough to retire…it’s a clear opportunity for financial advisors to improve and build their…practices.”

Foster further voiced that reviews can lead to improvements that could better meet sponsors’ objectives. Clearly, improvements to a plan should begin with a vigilant review and, as appropriate, include consultation with plan legal counsel and other experienced advisors. He also pointed out that when reviews take place, they often fail to emphasize saving rates and retirement outlooks.

“Unfortunately, only one in four sponsors reviews its plan to determine if employees are actually saving enough to retire,” Foster pointed out. “This points to a missed opportunity on the part of both the advisors and sponsors. We need to focus more on the effectiveness of the retirement plan and educational programs to help ensure that working Americans are saving enough to retire on their own terms.”

Missed opportunity sells everyone short. Let your QBI Consultant know how we can be of help with timely and effective administrative plan reviews that complement your investment reviews for your clients.

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