Retirement Preparedness Is Top Concern Among Employers, According to New Fidelity Study
Fidelity Investments, one of the industry’s most diversified and largest financial services companies, announced the results of the 11th edition of its Plan Sponsor Attitudes Study. According to the study, the top concern among 1,500 plan sponsors was whether their plan is effectively preparing employees for retirement financially, consistent with previous years. In late March, in the midst of market volatility and the COVID-19 pandemic, Fidelity also surveyed nearly 1,000 plan sponsors that recordkeep with Fidelity, and their top concern was employee financial well-being.i
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New @Fidelity Plan Sponsor Attitudes Study finds employees’ retirement preparedness is top concern for employers.
Fidelity’s study also revealed that plan sponsors continue to make changes to their investment menus and plan designs in an effort to improve participant outcomes. The study, which began in 2008, surveyed more than 1,500 employers – between Feb. 2 and Feb. 24 – which offer retirement plans that use a wide variety of recordkeepers.
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“While supporting their employees’ retirement readiness has always been a top priority for plan sponsors, the current market crisis has accelerated its importance,” said Liz Pathe, head of DCIO Sales, Fidelity Institutional. “Plan sponsors are looking for guidance and reassurance during this difficult time, and we continue to see plan advisors playing an important role in helping companies identify ways to improve their retirement plans and help their employees strengthen their financial well-being.”
Increased Focus on Investment Menu
In this 11th iteration of the Plan Sponsor Attitudes Study, Fidelity looked back at data after the financial crisis in 2008 to gain perspective on plan sponsors’ areas of focus during what were also uncertain times. In 2010, the top reason sponsors decided to begin using a plan advisor was because they needed help with plan investments, especially given the market situation (35%). This year, the top reason was for help with the increasingly complicated process of managing a retirement plan (29%).
Plan investments will likely become an area of focus again. When asked how their plan advisors underscore their value, more than half of sponsors (56%) said performance of plan investments. And overall, a majority (53%) of sponsors said investment menu changes were driven by a desire for better performance.
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