Thirty-eight percent of retirement plan participants rely on their employer plan provider to manage their outside assets, and another 35% would consider doing so, representing a sizeable untapped market for providers, according to Spectrem Group.
However, the 63% of participants who use different providers for their retirement plan and other assets believe their financial advisers are more concerned with selling products than properly advising them, and this will be a roadblock for those advisers and providers looking to work with participants holistically on their entire portfolio of assets, Spectrem says.
- 38% of retirement plan participants rely on employer plan providers
- 35% would consider going on their own
- 63% of participants who go outside for help, believe their advisers are “in it for the money”
- 831 401(k), 403(b) and 457 plan participants with a household net worth of at least $100,000.
“Plan providers should emphasize the level of satisfaction among participants who entrust outside assets to their provider,” Spectrem says. “Fully 93% of these participants report being satisfied versus just 31% of participants who use a third party to manage assets.
Original Source: https://www.planadviser.com/nearly-40-participants-rely-plan-provider-manage-outside-assets/