Data & Research February 6, 2012

Few Employees Will Be Prepared for Retirement

Eighty-four percent of polled executives responsible for 401(k) plans say only some or very few employees will be financially prepared for retirement.
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A top goal for 401(k) plan sponsors for the second year in a row is improving employees’ financial planning for retirement, according to the 11th Annual 401(k) Benchmarking Survey conducted by Deloitte, the International Foundation of Employee Benefit Plans (IFEBP) and the International Society of Certified Employee Benefit Specialists (ISCEBS). Nearly two-thirds of respondents (64%) believe their responsibility includes taking an interest in whether employees are tracking towards a comfortable retirement.   

To encourage plan participants to make better use of their 401(k), nearly half of plan sponsors (49%) are offering features that automatically increase participants’ contribution levels. However, nearly two-thirds (64%) of plan sponsors report that fewer than 10% of participants take advantage of this opportunity.   

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Additional survey highlights include: 

  • Only 15% of respondents surveyed say less than half their employees participate in a 401(k) plan. 
  • The majority of plan sponsors (70%) reported the average age range of participants is between 41 and 50 years old, representing a slight (4%) increase from the 2010 survey. 
  • Compared to the 2010 survey, the average participant account balance has been flat or slightly down. 
  • Auto enrollment continues to grow; 56% of 401(k) plans include an automatic enrollment feature, up 7% from 2010.  

Fee Disclosure  

According to the survey, the majority (79%) of plan sponsors indicate it is quite important or very important to improve understanding of (and potentially reducing) plan fees. Nearly three-quarters (71%) of plan sponsors rated the new fee disclosure requirements as quite important or very important.   

Only 39% of respondents indicate they are very informed and included in the design process when it comes to their ability to deliver the disclosures. More than half (56%) say they are somewhat informed.   

Most respondents (75%) agree or strongly agree they have no difficulty in obtaining a clear understanding of plan and participant fees.   

As the effective date of fee disclosure regulations approaches, 83% of plan sponsors believe their 401(k) fees are competitive.   

A detailed copy of the full survey report is available at http://www.deloitte.com/us/401Ksurvey2011 or http://www.iscebs.org.

Products February 6, 2012

Judy Diamond Launches BrokerSight Database

Judy Diamond Associates launched its BrokerSight database, which helps subscribers identify and begin relationships with producers in the retirement market.
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BrokerSight, formerly known as the Pension Annuities Database, includes important details about the books of business of group retirement brokers. It provides carriers and brokerages visibility into the client lists of the big players in the market. Subscribers can identify top brokers in each territory, which brokers sell for which carriers and critical broker contact data.

Judy Diamond Associates obtains raw data from the Department of Labor’s (DoL) Form 5500 and applies proprietary methodology to create a complete view of the market. Judy Diamond Associates also adds data such as phone numbers to enable subscribers to easily reach out to the most productive brokers in any market.

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“Because of their relationship with high-end clients, annuity-focused brokers are one of the most valuable targets in today’s retirement marketplace,” said F. Reilly Cobb, managing director of Judy Diamond Associates. “With BrokerSight, carriers and brokerages have the ability to personalize their broker-recruitment strategies with the best and most reliable targeting data available.”

For more information about BrokerSight, visit www.judydiamond.com or call 800-231-0669.

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