Employers offering defined-contribution plans to their workers are broadening their focus on financial well-being, according to a poll from J.P. Morgan Asset Management.
DC plan sponsors are especially keen to ensure that their employees are well-placed to enjoy adequate retirement income, with 9 out of 10 respondents saying they "strongly agree" or "somewhat agree" that it is important to offer investments that help participants generate income in retirement.
Six out of 10 believe that DC plans should be a vehicle to generate retirement income, and among those that do not currently offer this option 45% are considering doing so within the year. Those who do offer a retirement income option are more likely to say that their plan meets employees’ financial goals compared with those that do not.
Generally, there has been a sharp increase in plan sponsors feeling a strong sense of responsibility for their employees’ financial well-being — 85% said so in 2023 compared to 59% a decade ago.
Apart from retirement income, more than seven out of 10 respondents said they offer life insurance, six out of 10 offer disability insurance and mental health benefits, half make health savings accounts available, and just under half provide paid parental or caregiving leave.
Student loan debt assistance is offered by 40% of poll participants, with a similar share offering one-off help such as debt coaching.
“It's exciting to see that companies offering these types of programs see their retirement plans as more effective," said Alexandra Nobile, vice president of retirement insights at J.P. Morgan Asset Management. "The implications of SECURE 2.0 serve to only accelerate this trend and we expect to see more plan sponsors taking a proactive approach to evolving their retirement benefit offering through innovative DC plan design."
To help provide employees with a more rounded DC plan, sponsors are taking a proactive approach to plan design.
Among the survey’s other findings:
"Our research shows that DC plans have become the primary retirement savings vehicle for most working Americans, and in many ways plan sponsors have risen to the occasion, however there is a clear need for plan sponsors to better understand their role as a fiduciary, with just under half aware of their responsibilities," Catherine Peterson, global head of insights and product marketing at J.P. Morgan Asset & Wealth Management, said in a statement. "We expect to see a continued emphasis on incorporating retirement income solutions into DC plans going forward having been identified by plan sponsors as a core purpose of plans."
By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.
JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.
Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.
The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.
Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
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.
