Based on a survey of 451 executives at companies with 25 to 249 employees commissioned by Guardian and conducted by Brightwork, there is widespread satisfaction with their retirement plans — but especially among those that work with a plan advisor. Of those plans that work with an advisor, 61% are “very” or “somewhat” satisfied with their plan, compared with just 40% of those that do not use an advisor. A vast majority believe their plans are doing well in helping to recruit and retain employees.
Small business executives are busy and have little time to spend on benefits, especially retirement plans. About a third of plan sponsors do not realize that they are fiduciaries, and many others are confused about their roles and responsibilities. They are also concerned about fees and expenses, highlighting the fact that smaller companies are still struggling with the fundamentals of running a plan, and thus not focusing on retirement readiness — a good lesson for advisors in the small plan market. Among survey respondents, 46% do not offer a retirement plan, but more than half of them are interested in starting one — although there is confusion about the type of plan they should be considering.
All this raises the question of who is going to help the smaller plans that do not use a plan advisor and small employers that are considering starting a plan. Experienced plan advisors tend to move up-market over time, leaving smaller plans to choose from among advisors who are less experienced and thus less skilled — even though the demand and the opportunities in that market segment are great.
