LIVONIA, Michigan, July 21, 2022 (GLOBE NEWSWIRE) — A new Syndicated Cogent A report by Escalent shows that the underperformance of the plan’s investment options has increased the level of anxiety among sponsors of defined contribution (DC) plans. Top concerns include employees not saving enough for retirement, trust issues and potential lawsuits. But these looming challenges create an opportunity for plan providers to offer support, stepping in to help with advice on compliance, changing regulations and employee engagement.
These are the latest findings from Retirement plan ® reportwhich reveals the most critical trends in the plan sponsor market and identifies strengths and weaknesses in brand, loyalty and key plan sponsor experience metrics.
“Creating an attractive retirement plan for employees is even more challenging in today’s volatile economy and talent landscape,” said Sonia Davis, chief product officer at Escalent. “To combat plan member fears, our research argues that plan sponsors need to encourage employees to maintain a long-term strategy, avoid drastic withdrawals that will hamper future retirement readiness, and think beyond retirement. savings by asking for help for their disbursement phase.”
Growing increasingly pessimistic about the U.S. economy due to the war in Ukraine and market volatility, nearly four in ten plan sponsors (37%) expect national market, up from 20% in 2021. Concerns about underperformance of plan investment options continue to grow with 57% of guarantors affected in 2022, up 6% from 2021.
“For plan providers, understanding the most pressing issues facing their customers and demonstrating the capabilities that deliver solutions will build customer loyalty and pave the way for new business growth,” Davis added.
To learn more about the Retirement Planscape® report, visit stopover.co.
About Planscape® Retreat
Cogent Syndicated, a division of Escalent, conducted an online survey of a representative sample of 1,267 401(k) plan sponsors from February 11 through March 8, 2022. Survey participants were expected to take shared responsibility or exclusive of the design, administration or management of the plan. the selection and evaluation of plan providers, or to evaluate and/or select investment managers/investment options for 401(k) plans. To determine the sampling frame for this study, Cogent relied on recent Form 5500 filings, as maintained by ALM’s Judy Diamond Associates. To ensure that the population of this research is representative of the universe of 401(k) plan sponsors, quotas were established during the data collection phase around key firmographic variables, including total assets plan, number of plan members, industry and geography. A minimum weighting has been applied to account for deliberate deviations from the actual market distribution. The data has a margin of error of ±2.75% at the 95% confidence level. Escalent will provide the exact wording of any survey question upon request.
Escalent is an award-winning consulting firm that helps clients understand human and market behaviors to address business disruption and transformation. Catalysts of progress for more than 40 years, our strategies guide the world’s leading brands. We accelerate growth by creating a seamless flow between primary, secondary, syndicated and internal business data, providing consulting and advisory services from insight to implementation. Based on a deep understanding of what drives people and markets, we identify actions that build brands, improve customer experience, inspire product innovation and drive business productivity. Visit stopover.co to see how we help shape the brands that are reshaping the world.
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