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: First off, I would ask you how is your financial advisor reaching your employees? Is it group education, zoom meetings, one-on-one meetings, email, social media?
Second, I would ask what type of financial advice are they given? Have you tried out the financial advisor for your own questions?
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: Book a meeting and I’ll give you some tips to measure success!
Retirement Partners of California Can Help!
We’ll design an Employee Financial Education Plan to help improve your 401k participant results.
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.
©2025 Kmotion, Inc. All rights reserved. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.
RP-276-0825 Tracking #781124
