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.
Vanilla is extending its estate planning tech to Callan Family Office's ultra-high-net-worth business, while WealthFeed's organic growth engine will now be available to roughly 100 advisors at The Mather Group.
“We are helping families take an important first step toward building a financial foundation for the next generation,” said Franklin Templeton CEO Jenny Johnson
Richard Brothers Financial Advisors joins the fee-only RIA, adding its first Maine office and $240 million in client assets
Cleveland RIA grows to $68 billion in assets as Philadelphia team, deepening its high-net-worth and retirement-plan practice.
Financial planning leaders say unresolved rules on fees, Roth conversions and financial aid complicate comparisons with 529 plans.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
