Skip to main content

You are here

News > News Archive > QOTW: Investment Advice

Advertisement

 

QOTW: Investment Advice

The COVID-19 pandemic and ensuing economic challenges has changed many aspects of work and benefits program. As employers look for ways to support employees with financial decisions, we wondered if there has been an increase in the availability of investment advice for retirement plan participants. Historically, according to our Annual Surveys of 401(k) Plans, about a third of companies make investment advice available to participants, with about a quarter of participants using it – this has not changed much in the last decade. We wondered if as companies are reevaluating benefit packages with an eye towards recruitment and retainment in a tight labor market, and are looking to support employees going through economic hardships, if they are adding investment advice. Respondents to our ICYMI question of the week overwhelmingly are with 93.2 percent indicating they provide it – three-quarters provide one-on-one advice with an advisor, nearly 60 percent provide access to online advice, and nearly 20 percent make a robo-advisor available to participants.

Now, I don’t think more than 90 percent of all companies are now providing advice, up from a third that we see in the annual survey, this is likely due to the engagement of the members that answered our poll, but … it will be interesting to see what the upcoming 65th Annual Survey (opening soon!) data reveals – it is very likely we will see an uptick in advice availability, and hopefully usage by participants as well.