Q: Erick, despite our promoting the use of a financial planner or advisor in their retirement planning efforts (including our own plan advisor), most of our employees still don’t work with anyone. Are we the rule or the exception?
A: The Cerulli Report—U.S. Retirement End-Investor 2025 found that the majority (63%) of active 401(k) participants, many of whom fall into the mass-affluent category, do not work with a financial advisor. Meanwhile, 52% of mass-affluent active 401(k) participants who do not work with an advisor say their recordkeeper is their primary source of retirement planning and financial advice. Cerulli suggests that plan sponsors consider repositioning the 401(k) (or other workplace retirement plans) as a means to access financial planning, financial wellness platforms and other in-plan advice offerings, as well as engaging with participants when they are considering their other benefits.
Next step: Let’s meet and discuss your Employee Benefits Package. Book a meeting!
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Disclosures, Sources, and Footnotes
For plan sponsor use only, not for use with participants or the general public. This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.
Kmotion, Inc., 12336 SE Scherrer Street, Happy Valley, OR 97086; www.kmotion.com
©2024 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance; nor as the sole authority on any regulation, law or ruling as it applies to a specific plan or situation. Plan sponsors should consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.
RP-276-0825 Tracking #781124 (Exp. 08/27)
