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.
The top-ranked RIA by total AUM continues to scale its wealth management arm, bringing its Pennsylvania presence to five offices.
The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.
Chicago Partners Wealth Advisors is helping shape the platform's product roadmap after switching from a legacy system.
RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
