Edelman Financial Engines brings fiduciary advice to small business plans

Edelman Financial Engines is doubling down on its retirement planing focus with a new program for small and mid-sized employers are ready to outsource the fiduciary burden of being a plan sponsor.

On Wednesday, the firm unveiled a new integrated offering, delivered through recordkeeper ADP, that bundles investment management, 3(38) fiduciary oversight, plan consulting and one-on-one participant advice into a single fee.

The Edelman Financial Engines Retirement & Employee Planning Solutions program extends a relationship between the two firms that dates back to 2018, when EFE's financial wellness and advisory services first became available to employees in eligible ADP-administered plans.

Chris Magno, senior vice president and general manager of ADP Retirement Services, said the expanded arrangement is "purpose-built for small and mid-sized businesses," pairing EFE's advisory capabilities with ADP's recordkeeping, payroll integration and plan administration.

Under the program, EFE is able to assume 3(38) investment fiduciary duty at both the plan and participant level, selecting and monitoring the investment lineup while giving employees phone-based access to advisors who average a decade of industry tenure, plus digital planning tools.

"We're meeting people where their financial journey begins, and working with them as they build wealth through their employee sponsored retirement plan," said EFE President and CEO Ralph Haberli.

Read more: Small business owners need broader support, opening up opportunities for advisors

Advisors circling retirement plan market

EFE is well-known for its focus on the retirement plan space, having been formed via the 2018 merger of 401(k)-focused robo-advisory firm Financial Engines with Edelman. Last month, the firm bolstered that commitment with the appointment of OneDigital alum Christian Mango as SVP and retirement advisory practice leader, a role that puts him in charge of growing EFE's retirement plan services business via a mix of organic and inorganic strategies.

Read more: Edelman Financial Engines taps OneDigital alum as first retirement advisory chief

The EFE-ADP launch arrives alongside new research from Fidelity Investments, which found 93% of plan sponsors now work with an advisor to navigate plan design, investment decisions and long-term strategy.

Fidelity's 17th annual Plan Sponsor Attitudes Study, which surveyed more than 1,300 plan sponsors, also revealed rising interest in advisor-led outsourcing, with 41% of sponsors say they prefer advisors to hold full discretion over investment menu decisions, up from 36% in Fidelity's 2025 study.

Mike Manosh, Fidelity's defined contribution investment-only sales lead, said the data reflects "the growing trust plan sponsors place in their advisors and their increasing willingness to turn to outside expertise as retirement plans become more complex."

Sponsors reported turning to advisors most often for help with industry, legislative and fiduciary issues, cited by 56% of respondents, followed by individual retirement planning support for employees and analysis of plan metrics, each cited by roughly half.

The Fidelity study also found sponsors expanding what they offer participants: approximately 89% plan to add new investment options over the next year, and confidence in participant readiness has risen, with 79% of sponsors now saying participants are saving enough for retirement, up from a lower share the prior year.