While not very high, participants’ trust in retirement plan providers has risen to 11% this year, according to the National Association of Retirement Plan Participants’ (NARPP) Participant Trust and Engagement Study. Their trust in retirement plan providers had hit an all-time low of 8% in 2016. Confidence in their providers has also risen, to an all-time high of 24%.
NARPP says that trust in retirement plan providers is critical, as it affects plan participation, deferral
rates and the use of plan tools. “Engagement
is grounded in emotional factors like, feeling secure, having confidence about
the future and feeling in control,” says Laurie Rowley, co-founder of NARPP. “Trust
catalyzes the efficacy of these emotional factors into improved financial
The study also found that participants’ satisfaction with the education and
communication provided to them in their plan is at 46%, up from 43% in 2016.
NARPP found that trust rises when participants believe that the information and
education they receive is in their best interest, the education is easy to
understand, their provider demonstrates an interest in their long-term
financial security and helps them achieve their financial goals.
A full copy of the report, based on an online
survey of 4,000 retirement plan participants, can be requested by emailing
NARPP at Info@NARPP.org, or by calling 415-509-9687.