Cogent: Advisers Should Lean Into 401(k) Cost-Cutting Conversations

A new Cogent report shows plan sponsors are more likely to direct heightened scrutiny, including cost-cutting, toward their retirement plans.


Plan advisers should be ready for, if not prompting, conversations with plan sponsors who are scrutinizing their defined contribution retirement plans, including pricing transparency, according to the lead researcher of a recent Cogent Syndicated retirement report from Escalent.

Reducing retirement plan costs is a core focus for 50% of defined contribution plan sponsors with more than $100 million in plan assets, according to Escalent’s Retirement Planscape report released June 30. That’s up from 35% from the same survey in 2021, showing increases in both cost pressure and in focus on better provider performance, according to Sonia Davis, the report’s lead author and a senior product director at Escalent.

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“One of the key takeaways in this year’s research is that cost reduction is now a universal endeavor across all 401(k) plan sponsors,” Davis says. “It’s not just among the more micro-plan sponsors.”

In a survey of 1,353 plan sponsors conducted in February and March, 19% said they were “not at all confident” in the stability of the global economy, an increase from 12% in 2021, according to the report. When researchers asked plan sponsors about their “biggest pain points,” the top concern was evaluating their 401(k) plan, according to Davis.

“That is a sign that both firms and the intermediaries have yet to provide sufficient support in helping [plan sponsors] evaluate and help them understand what is going on,” she says. “Plan sponsors don’t want to be caught off guard; they want to be sure they are doing what’s best for their participants.”

Retirement plan committees “are getting more scrutiny from their executive committees,” Davis says, including having to define and explain costs and administration of their retirement benefits. Transparency and education from plan advisers can be a key asset for clients as they navigate these meetings, according to Davis.

“The more plan sponsors are informed and the more they understand the fees, the better off everyone is,” she says. “Advisers are being vetted by their ability to be transparent.”

Some of the larger plan sponsors may want to send requests for proposal to recordkeepers and third-party plan administrators to gauge the market and return with price negotiating power, something with which plan advisers can assist, Davis notes.

The Escalent survey also found that plan sponsors are more aware of digital 401(k) plan providers than in the past: The firm found that the proportion of plan sponsors who are unaware of digital recordkeepers decreased to 39% this year from 52% last year.

Five of nine digital providers evaluated also increased their brand awareness over the year, Davis says, citing ShareBuilder 401k, 401k Easy, Vestwell Holdings Inc., Ubiquity Retirement + Savings and Guideline Inc.

The biggest draw for plan sponsors considering digital recordkeepers are better cost structures (43%), according to the report. The next biggest draws are better digital capabilities (36%), easier participant onboarding (34%), better payroll integration (33%) and  innovative technological platforms (31%).

“They are getting on some of these plan sponsors’ radars,” Davis says. “How much of a threat they can be [to legacy recordkeepers] is still kind of TBD, but the fact that large and mega plans are aware of them is something that more of the established firms definitely need to take note of.”

Advisory M&A

Hub International acquires Golden Corner Wealth Advisors; Marsh McLennan Agency adds Integrity HR Inc.; Day & Ennis joins Mercer Advisors; and more.


Hub International Acquires Golden Corner Wealth Advisors

Hub International Ltd announced it has acquired the assets of Golden Green Inc., doing business as Golden Corner Wealth Advisors.

Located in Seneca, South Carolina, Golden Corner is a financial advisory firm specializing in wealth management and retirement. Founder Jim Charbonneau and the Golden Corner team will join Hub Carolinas. 

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“We are excited to welcome the Golden Corner team to Hub Carolinas and look forward to further expanding our retirement consulting services in the region,” Tommy Suggs, president and CEO of Hub Carolinas, said in a statement.

Marsh McLennan Agency Announces Acquisition of Integrity HR Inc.

Marsh McLennan Agency, a subsidiary of Marsh, announced the acquisition of Integrity HR Inc., a human resources consulting firm based in Louisville, Kentucky.

Founded in 2007, Integrity HR will join Marsh McLennan Agency’s national employee health and benefits division. The firm will expand its offerings to include compensation consulting, executive succession planning and talent acquisition. Integrity HR’s 13 employees, including Amy Letke, founder and CEO, will join Marsh McLennan Agency.

“By bringing Integrity HR on board, we are elevating our national Employee Health & Benefits offerings to provide midsize clients with a full suite of benefits and HR services,” Kate Moher, president of national employee health and benefits at Marsh McLennan Agency, said in a statement.

Day & Ennis Joins Mercer Advisors

Mercer Global Advisors Inc. announced the acquisition of Day & Ennis LLC, which serves approximately 250 clients with assets under management of approximately $400 million.

Day & Ennis is a comprehensive wealth management firm headquartered in Macon, Georgia. The firm was founded in 1998 by John Day, and he was later joined by partners William Ennis and Matthew Heller.

“Day & Ennis has built their firm the right way by putting their clients’ interests first,” said Dave Welling, CEO of Mercer Advisors, in a statement. “We are excited to have them join our team and expand our significant presence in Georgia.”

Wealth Enhancement Group Adds Ryan Financial

The Wealth Enhancement Group announced the acquisition of Ryan Financial Inc., a hybrid registered investment adviser located in Denver.

The team at Ryan Financial, led by Robert Ryan, founder and CEO, and Erik Anderson, president, oversees more than $200 million in client assets. Founded in 2000, the firm focuses on offering qualified retirement plan support, financial planning and asset management. 

“After 23 years as a private, independent firm, the partners and advisers at Ryan Financial Inc. are eager to join forces with Wealth Enhancement Group,” Ryan said in a statement. “We are aligned with the firm’s values, and this partnership will allow us to offer our clients additional services through Wealth Enhancement Group’s Roundtable team of specialists.”

Mission Financial Planners Join Kestra Financial

Kestra Financial announced the addition of Mission Financial Planners, whose financial professionals oversee $120 million in client assets.

Located in San Antonio, the firm’s team specializes in developing personalized financial plans. The firm is led by managing members Kenneth Hamilton, Jason Duffaut and Matt Donaghue.

“We needed a partner that would let us be independent and enhance our entrepreneurial spirit while supporting our growth initiatives through competitive marketing, business consulting, and compliance resources to help us grow,” Donaghue said in a statement. “With Kestra Financial, we found the exact balance we were looking for.”

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