Retirement Readiness — Attitude Convergence

Two years ago, advisors were far less sanguine than sponsors about plan participants’ retirement readiness. In the 2018 refresh, we found those views have begun to converge: advisors are less pessimistic and sponsors are less optimistic:

Sponsor and advisor views of participant retirement readiness are converging1

Sponsor and advisor views of participant retirement readiness are converging

Source: Voya Investment Management

Perhaps advisors were successful in convincing sponsors to be more concerned with participants’ retirement readiness. Yet, challenges remain: the percentage of respondents who indicate poor retirement readiness remains high, and has risen among plan sponsors. The good news for advisors is that now plan sponsors are likely to be more receptive to ideas for improving retirement readiness.

Both advisors and sponsors see the need to improve retirement outcomes for plan participants. They probably also recognize the importance of financial wellness, but may not understand the cost-benefit trade-offs of such programs. Use your next client meeting to introduce this rising issue — frame your educational presentation as a risk-reward assessment.

Survey of the Retirement Landscape: Insights from Current Research

Voya Investment Management recently released the second edition of its survey of retirement plan sponsors and plan advisors, to identify and better understand the current service needs of sponsors and help DC-focused advisors better align their offerings and priorities to meet those needs. Though some perceptions have changed since the initial survey in 2016, views on a few key issues have evolved and several new issues have arisen. We present key findings of the study in this series of insights. For all the research results, read Survey of the Retirement Landscape: Challenges and Opportunities for Advisors.

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1 Survey question to plan sponsors: How prepared are your plan participants for retirement? Question to plan advisors: How prepared are plan participants for retirement?

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