How to become a more valued retirement plan adviser

As defined contribution investment-only providers, we often jump into the investment solution discussion with clients and prospects. However, we sometimes forget that people — not products or asset allocation — are the center of the retirement conversation.
In fact, leading with a focus on people can make it easier to connect with clients and prospects, resulting in more fruitful conversations that reveal opportunities where you — and the investment solutions you offer — can make a real difference. Consider the following tips.
Academics in behavioral finance have long documented the challenges employees face when saving and investing for retirement. We know people struggle with choosing investments; they discount their future needs, and they are pressed for time. Even those with the best intentions can have significant difficulty doing the right thing.
I work with some of the largest employers in the U.S., including those with large and savvy investment staffs. Yet I have found that, whether I am talking with the most junior human resources staffer or the most sophisticated executive, it makes sense to focus first on what we know about participants and the very real pitfalls they encounter.
This approach fosters a sense of collaboration: the feeling that the employer and I are working together to understand their employees’ needs and objectives. In fact, most employers who administer 401(k) plans see plan design and employee engagement to be just as critical as the investment options.
Meeting employers where they really are creates the opportunity for a deeper conversation about their needs and priorities. And that, in turn, can help you better position the investment solutions you offer.
TAKE A HOLISTIC APPROACH
While I find that clients do have questions about asset allocation and how to drive better returns, these are only some of their concerns. Their employees’ savings rates and proper usage of the plan also weigh heavily on their minds.
Position yourself as a partner by sharing defined contribution market trends, employee engagement techniques and even anecdotal information about other employers’ successes. For example, financial wellness is an emerging trend in the benefits arena. Employers are beginning to look more broadly at how to help employees address debt or build budgeting skills. And employees have indicated they want and need financial planning help from their employers.
Listening is key to this holistic approach. I often ask employers questions about what keeps them up at night and the worries they have about their employees. After hearing their concerns, I will share anecdotal or trend data that points to areas they can address with simple solutions.
When working with smaller companies, you are likely to encounter a level of financial literacy that is similar to that of the average participant, rather than a sophisticated chief investment officer. The people you meet likely wear multiple hats, and the 401(k) plan may be just one of their responsibilities.
That makes it important to tailor the conversation about the products you offer to your audience. Focus on two areas: the benefits your products provide and the key takeaways you want your contacts to remember.
In the presentation itself, emphasize high-level information and make the more granular details secondary. Doing so will help make your pitch more navigable for your prospective clients. Throughout the conversation, return to your key takeaways periodically.
SPEAK THEIR LANGUAGE
Avoid complex investment jargon, as well as your own internal acronyms. Doing so will help you connect more authentically with your clients. After all, in addition to conveying your value proposition, you’re looking to learn how you can help solve your clients’ problems. Speaking their language fosters a more open dialogue, which will give you more insights into their challenges — and your opportunities.
The retirement conversation is broad and complex. Show your clients you understand the challenges they and their participants face. Bring them insights and information from the broader DC arena. Speak accurately and intelligently about investment products without resorting to obscure jargon and lots of minutiae. Doing so can position you as a valued partner — and the first one they’ll contact when considering plan changes.
Megan Yost is vice president and head of participant engagement for State Street Global Advisors’ defined contribution team.