Finding a Pulse

However, if you look at other numbers, it seems there still may be a long way to go before things return to “normal.” While a multitude of surveys claim to be taking the pulse of the economy, they all seem to be looking at different things—making it that much harder to know what is going on. That’s why it is so important to make sure that you know what is being evaluated, and who is doing the evaluation—before you draw conclusions based on a catchy headline.

This summer, as we have every year since 2006, PLANADVISER took its own ”pulse” of its retirement plan adviser audience—focusing on the perspectives and opinions of advisers who sell and service retirement plans as a part of their business. We presented some of that information at our recent PLANADVISER National Conference and a bit more in our September-October issue of the magazine but, in this special issue of PLANADVISER, we expand on those findings.

We have divided the research findings into three sections. In “Reflecting on Your Practice,” we examine various components of running your business: number and type of clients, target market, business model, and broker/dealer affiliation, as well as top concerns and predicted growth areas. (It is safe to say that sales is front of mind for the majority of adviser respondents.)

We also asked advisers to talk with us about fees—specifically, how they charge their clients, as well as what they charge to clients of various plan sizes and for certain ancillary services. Fees based on assets are most common (74.2%), but commissions and 12b-1s still are charged by 68.4% of advisers. In addition, in light of all that is going on in Washington around the topic of fee disclosure, we also surveyed advisers about how and what they disclose to their clients. You can see if you are on par in “Measuring Up.”

Also, as our cover suggests, we asked advisers to tell us about their preferences in working with defined contribution plan providers and in building an investment lineup, as we have the past few years. You can compare your personal evaluations of recordkeepers and investment managers with those of advisers surveyed in “Best of.”

We have revisited research we did earlier this year about the retirement readiness of advisers’  clients and plan participants  (“Solving for X”), and asked about their involvement in retirement income planning and product knowledge of various retirement income solutions. Not surprisingly, more than 80% of advisers say it is very or somewhat unlikely that participants’ savings and known sources of income will be sufficient to sustain their retirement needs.  

Finally, each year, sister publication PLANSPONSOR takes the pulse of thousands of plan sponsors, and the information gathered is a wonderful demonstration of plan statistics and trends. One way we’ve cut this information in the past is to analyze plans that say they use an adviser against those that don’t. Although, in recent years, the gap has seemed to narrow between those plan segments, there are still positives for plans using an adviser that you can share with prospective clients (see “Polishing a Client’s Retirement Plan”).

Each year, the research presented here builds on a legacy of information and, as we look forward, we plan to expand the breadth and depth of PLANADVISER’s research to address some of the regulatory and technological developments, and understand how those affect your practices, including some more quick polls published online. If there is a particular area in which you would like to see a research study or a quick poll of your colleagues, please let me know.

Of course, the research presented here and our plans for the future are only possible thanks to your cooperation. For those of you who continue to take the time to answer our e-mail questionnaires, I thank you, and encourage everyone to consider adding your voice next year, making the research that much more valuable to all of us.