Advisors play pivotal role for plan sponsors seeking clarity, Fidelity survey finds

Plan sponsors are increasingly turning to advisors to help them navigate a complex retirement landscape, according to Fidelity Investments’ latest Plan Sponsor Attitudes Study.

The annual survey, now in its 16th year, found that 92% of plan sponsors work with an advisor, a figure that has risen from last year as employers seek to improve participant outcomes and address evolving workplace needs.

The study, which gathered responses from more than 1,100 employers offering retirement plans through a range of recordkeepers, highlights that plan sponsors continue to value advisors for both their service and cost efficiency.

Top priorities for sponsors include improving participant outcomes – such as increasing savings rates and enhancing employee asset allocation – boosting employee satisfaction, and optimizing plan design to meet shifting company needs.

Many sponsors point to the advisor’s role in helping participants prepare for retirement, especially as financial challenges mount.

Satisfaction with advisors appears closely tied to participants’ retirement readiness. Among sponsors who felt their participants are saving enough for retirement, 74% reported high satisfaction with their advisors, compared to 58% among those who did not share that confidence.

“Advisors have an opportunity to help plan sponsors cut through the noise, navigate change and ultimately help determine the best offerings for their plan participants,” Christopher Alpaugh, head of defined contribution investment only sales at Fidelity Investments, said in the company’s news release published Monday.

Financial wellness programs are gaining traction, with 93% of sponsors reporting they have implemented such programs – 60% of them within the past year. Still, only about half of employees are currently enrolled.

Nearly seven in ten sponsors who have adopted financial wellness initiatives described them as very impactful, suggesting a growing focus on employee engagement and education. Plan sponsors indicated they want advisors to provide more content and education on financial planning, wellness, and retirement income in the coming year.

Despite these efforts, fewer plan sponsors – 67% – now believe their participants are saving enough for retirement, down from 82% in 2024. Rising living expenses, health care costs, and education debt were among the obstacles cited by sponsors as barriers to increased savings.

When asked about their primary goals for offering a retirement plan, 33% of sponsors cited attracting and retaining top employees to remain competitive in the workplace. Providing opportunities for employees to save for retirement was named by 23%, while 20% pointed to reducing the financial stress employees face in planning for retirement. Driving employee productivity through financial wellness programs was a goal for 17%, and 7% said they aimed to meet state requirements.

The survey also points to a sense of fatigue brewing within retirement plans, with half of plan sponsors saying the pace of change is exhausting and contributes to employee burnout. The introduction of new products and investment menu options is a factor, with 58% of sponsors noting an uptick in solicitations for new investment products.

As plan sponsors look ahead to pending SECURE 2.0 legislation, 94% reported making at least one non-mandatory change to their plans, signaling a shift from compliance to enhancement.

In an emailed statement to InvestmentNews, Alpaugh noted that plan sponsors are “seeing more investment products pop up and getting pitched," creating increasing urgency for advisors to step in.

"Advisors can help plan sponsors stay focused on what’s right for their participants," Alpaugh said. "It’s not just about picking investments though; advisors can be a trusted partner helping plan sponsors stay informed and make smart, confident decisions with plan participant outcomes top of mind.”