A new survey from BlackRock reveals that retirement plan advisors are increasingly prioritizing active management and income strategies to help clients navigate market volatility and uncertainty.
According to BlackRock’s 2024 Read on Retirement: Advisor Outlook, 81 percent of retirement plan advisors are discussing retirement income solutions with defined contribution clients, reflecting growing concerns about participants outliving their savings.
“In these uncertain market conditions, retirement plan advisors are looking for solutions that will help more Americans achieve better retirement outcomes,” Carrie Schroen, head of BlackRock’s US defined contribution intermediary business, said in a statement.
BlackRock's retirement plan advisor survey also highlights a rising interest in active management, with 55 percent of advisors believing that active managers can consistently outperform the market. Advisors cited access to a broader range of investments (59 percent), protection against loss (47 percent), and sector choices (44 percent) as key reasons for incorporating active strategies. Access to cost-effective strategies (71 percent), diversification (66 percent), and manager expertise (60 percent) were ranked as top factors when conducting due diligence on active investments.
Despite these trends, only 58 percent of plan sponsors believe participants are on track with their retirement savings, a decrease from 64 percent in 2023. One challenge advisors face is effectively communicating the benefits of retirement income solutions. According to the survey, 44 percent of advisors say that articulating the advantages in terms of improved outcomes is a barrier to broader adoption.
“The findings underscore that it is not enough to offer retirement income solutions; participants also demand greater education to help sift through the complexity,” noted Rob Crothers, BlackRock’s head of US retirement.
The survey further shows that advisors are beginning to embrace artificial intelligence in their practice management, with 53 percent reporting that they are likely to adopt AI-powered tools within the next 12 months. However, just 9 percent are currently using AI tools.
‘Revenge tax’ on foreign investors could be scrapped in new version.
Veteran legislator helped set the standard for derivatives regulation.
As industry edges closer to the technology, an expert explains the options.
Counting advisor moves in and out of firms requires some art as well as science.
“I'm just a big believer that based on demographics alone, we are looking at a 10-to-15 year bull market in M&A in the RIA and independent wealth space,” said Michael Belluomini, SVP of M&A at Carson Group.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
