Plan sponsors are getting proactive in challenging times, but need more from advisors

Retirement plan sponsors are facing a new era of economic uncertainty and workforce transformation, prompting many to focus on proactive plan design and employee financial wellness strategies.

That’s one of the key takeaways from JPMorgan Asset Management’s newly released 2025 Defined Contribution Plan Sponsor Survey which reveals that employers are no longer standing still.

Of the 750 plan sponsors who took part, 83% now feel a high level of responsibility for their employees’ financial wellness. That’s up from 74% ten years ago.

Nearly half of respondents currently offer a financial wellness program, up from just 30% just two years ago while another 36% are considering one. Among those who have implemented such programs, many report expanded benefits like tuition reimbursement, emergency savings, and student loan assistance.

However, only 22% of plans offer emergency savings benefits, despite 39% of workers saying they lack basic emergency savings in last year’s DC Plan Participant Survey.

Another area where there in strong interest but not offered widely enough is student loan support, although this is likely to change as SECURE 2.0 makes it easier for employers to match contributions tied to loan repayments.

"Our 2025 Plan Sponsor Survey highlights a shift in retirement planning with plan sponsors recognizing the need for proactive strategies to enhance participant outcomes," said Alyson Frost, head of Retirement Insights at JPMorgan Asset Management. "The findings emphasize the important role of financial wellness programs in boosting employee productivity and engagement.”

Proactive plans - those that take a hands-on approach to enrollment, contributions, and investment defaults - now make up 49% of the sample, up from 44% in 2015.

These sponsors are not only more likely to use features like automatic enrollment and escalation, but they’re also more satisfied with key plan outcomes such as participation, savings rates, and investment performance.

Plan sponsors working with an advisor are more likely to adopt proactive plan features, feel confident about participant savings behavior, and understand complex investment options like target date funds.

However, satisfaction with advisors has dipped with only 62% highly satisfied, down from 83% in 2023.

“There’s an opportunity here,” the report suggests, “for advisors to differentiate themselves through proactive guidance, fiduciary education, and support with SECURE 2.0 innovations.

Many plan sponsors are struggling with fiduciary awareness and investment literacy with more than half not realizing they are plan fiduciaries, and one-third of those offering target date funds admit they don’t fully understand how they work, highlighting the need for more advisor education and support.

Almost 80% of plan sponsors agree that their plans should help participants generate income in retirement.

Of those without in-plan income options, 61% are likely to explore adding one this year. Sponsors and participants alike ranked income growth, flexibility, and guaranteed lifetime income as top features they want in future solutions.

The report shows that plan sponsors are embracing a more dynamic role as less of a passive gatekeeper and more of a strategic partner.