RETIREMENT PLANNING SURVEY

The Takeaway For Advisors

The upshot for advisors in this environment is that they are likely to see a lot of interest in what they do ( and an opportunity for client acquisition ) in workplace retirement plans .

“ What we are seeing in the industry is more plan participants are looking to engage with advisors — the plan advisor that ’ s been brought into place by their employer for them . And they more and more are looking for those advisors to

How many 401 ( k ) or other company retirement plans do you manage for business clients ?

None 26.06 % 1-10 53.99 % 11-25 11.7 % 26-50 3.72 %

> 50 4.52 %

Based on 376 respondents .

be able to extend support outside of the context of the plan ,” Powers says . “ Where we ’ re at now , the younger generations are really expecting and seeking that holistic support . They don ’ t want the decumulation plan for their 401 ( k ) assets . They want a decumulation plan that ’ s inclusive of their 401 ( k ) assets , but also considerate of their broader financial situation .”

Plan advisors are therefore in a good position to offer extended services that come outside of the plan relationship — where they can offer holistic planning support .

What is the typical AUM of the company retirement plans you manage for those clients ?

< $ 5M 70.75 % $ 5M to $ 10M 17.82 % $ 11M to $ 20M 6.12 % > $ 20M 5.32 %

Based on 376 respondents .

In fact , 53.99 % of advisory survey respondents say they currently manage between one and 10 company retirement plans , and 11.17 % say they manage between 11 and 50 . For the remainder , 8.24 % manage more than 26 plans . Only 26.06 % of advisors say they don ’ t manage any .

But the plans tend to be small : 70.75 % of advisors say they ’ re handling plans with less than $ 5 million in assets . Another 17.82 % say their plans are between $ 5 million and $ 10 million , leaving 11.44 % of the plans larger than $ 10 million in assets .

But even as these advisors strive to make inroads with plan sponsors and their employees , one can ’ t help but hear , “ Physician , heal thyself ” echoing through the industry . Only 58.78 % of the polled advisors have succession plans in place for their own practices , while 27.66 % are “ starting to think about it ” and 13.56 % say flat out that they have not put any plans in place .

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DECEMBER 2024 | FINANCIAL ADVISOR MAGAZINE | 47