Sponsors Recommend Their Advisers
Retirement Plan Advisors recently reported that Greenwald & Associates surveyed 565 employers for Massachusetts Mutual Life Insurance Co. last year and reported that 88% of these sponsors would recommend their adviser to another employer with 37% saying they would be “very likely” to do so. 93% reported the costs and benefits of working with advisers as favorable and 94% reported overall satisfaction with their adviser. A mere 10% indicated they probably would not make a recommendation.
More advisers are responding to more formal requests for proposals (RFPs) than previously, but 58% of employers continue to use referrals to find advisers.
A slim 10% of employers find their advisers through online searches and of this group:
- 72% look for advisers working with companies similar to theirs
- 47% search for customer testimonials
- 43% are drawn to an effective website
- 41% are looking for a good value proposition
- 40% seek fee transparency
- 29% want an adviser physically close to their headquarters
However, the survey findings showed that 35% of the clients had changed advisers recently:
- 41% said their adviser was “simply bad”
- 17% switched to reduce fees
- 15% indicated a change in their company’s management vision or ownership
Other reasons for making changes included:
- 11% wanted better overall service
- 10% stated their adviser had left the practice
- 7% were looking for better investments
- 6% cited poor returns
- 4% wanted a higher level of fiduciary support
MassMutual’s Tom Foster, national spokesman and practice management leader says, “It’s a great opportunity for advisers who want to build their retirement plan practices. The retirement plan business is about solving problems. Advisers who are attentive and responsive, keep up with the regulatory environment, and work closely with sponsors to help their employees become retirement ready have tremendous opportunities to grow in the retirement plan marketplace.”
With such a positive result, it clearly points out that most plan sponsors are happy enough with their advisers to recommend them.
Let QBI know how we can help you develop improved support and business growth.