401(k) providers see participant calls surge in wake of historic Brexit

401(k) providers see participant calls surge in wake of historic Brexit
Call volumes rose in the first few hours of trading Friday as investors tried to make sense of what Brexit means for their retirement accounts.
JUN 29, 2016
Retirement plan participants phoned their providers in a frenzy Friday morning as news of Britain's exit from the European Union caused severe market gyrations and investors wanted to know what it meant for their nest eggs. Some of the largest record keepers of defined-contribution plans reported volumes to their participant call centers spiking higher than normal, reflecting how investor fear can rise in volatile markets. Fidelity Investments, the largest record keeper of defined contribution plans, saw call volume for its 401(k) business increase 50% over regular levels for the first hour of business Friday morning. U.S. stocks opened down 2.6% Friday as investors reacted to the United Kingdom's historic vote to leave the EU, known as Brexit. Financial markets had been expecting Britain to favor staying put. The following two hours saw a slight tempering in activity, to levels around 20% higher than normal. Activity was close to normal around noon, according to spokesman Michael Shamrell. The majority of the calls were guidance calls, with participants looking for help and direction from Fidelity, he said. Voya Financial, Empower Retirement and Massachusetts Mutual Life Insurance Co. also saw an elevated number of participant calls. Voya's call volume climbed 28% compared to a normal Friday morning, spokesman William Sutton said. Empower, which serves 8 million participants on its platform, saw a 24% spike over normal volumes as of approximately 11 a.m. ET Friday morning, according to Empower president Edmund Murphy. “When you get these kind of events, it tends to lead to higher volumes,” Mr. Murphy said. MassMutual fielded double the number of calls compared with the previous Friday, with participants asking what they should do to react to the markets, spokesman David Potter said. Market volatility in January this year caused a similar reaction from participants. On Jan. 4, for example, an all-time record of almost 4 million people contacted Fidelity either online or by phone to check on their retirement savings. Most of the time, however, participants aren't taking any ill-advised, knee-jerk actions during volatile times.

Latest News

Cerulli: Advisors struggle to turn 401(k) savers into wealth clients
Cerulli: Advisors struggle to turn 401(k) savers into wealth clients

Just over 10% of advisors' wealth clients come from defined contribution plans, as capacity, data and technology gaps block the bridge to wealth

Alto to buy Forge Trust from Schwab in self-directed IRA push
Alto to buy Forge Trust from Schwab in self-directed IRA push

Deal creates a $20B-plus custody platform for private market investing in IRAs, months after Schwab closed its Forge Global purchase

Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report
Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report

Despite the good times, advisors should tread carefully, said one veteran industry executive.

Most workers have retirement plans but no retirement strategy
Most workers have retirement plans but no retirement strategy

Gallagher data reveals a huge gap in financial confidence between employees who work with an advisor and those who don't.

Small employers are more open to pooled retirement plans
Small employers are more open to pooled retirement plans

PEP assets hit $34bn at year-end 2025 as advisors navigate mandate deadlines and a 48% employer interest rate.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor