Data & Research December 12, 2018

Small Business Owners Support Open MEPs

The majority of small business owners agreed that offering a retirement plan for employees is “the right thing to do."

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A recent Empower survey found that small business owners are likely to consider open multiple employer plans (MEPs).

The majority of small business owners agreed that offering a retirement plan for employees is “the right thing to do,” and cited this as their primary reason for offering a plan, reports Empower. This outnumbered ‘employee retention’ and ‘attracting talent,’ as both placed second and third in reasons for retirement plan implementation.

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Of the 66% who responded in favor of the plans, 55% stated the likelihood of lowered costs for themselves is their top reason for supporting MEPs, while 54% said they were interested in reduced fees for employees. Forty-nine percent stated the variety of plan and fund options to meet employee needs was their top interest, and 29% indicated this as the most important thing when considering an MEP. In fact, the research makes a point that while MEP expansion would benefit small business owners, it can only succeed should it offer multiple plan and fund options for employees, and lessened costs.


According to the survey, 89% of small business owners agreed that positive outcomes associated in adding retirement plans for employees overshadowed potential downsides, and 86% said their company feels a “strong sense” of responsibility in providing financial education. Eighty-five percent indicated how significant an employee’s retirement readiness is to overall retirement benefits success.

While MEPs continuously receive support from the retirement industry, policymakers have failed so far to pass legislation allowing for them. In October , the Department of Labor’s (DOL)’s Employees Benefits Security Administration (EBSA) proposed regulations to expand access to MEPs, but industry stakeholders were disappointed the proposal does not address open MEPs.

Client Service December 12, 2018

Advisers Boost Investors’ Retirement and Investment Confidence

Those who work with a financial adviser are more than twice as confident they will have enough money to enjoy a comfortable retirement, Legg Mason found in a survey.

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According to the Legg Mason Global Investment Survey, investors who work with a financial adviser are more than twice as confident that they will have enough money to enjoy a comfortable life in retirement.

Additionally, investors working with an adviser are more confident their investments will perform well in the upcoming year. They also reported having more diversified portfolios, less reliance on U.S. stocks and were more willing to invest in environmental, social and governance (ESG) products.

However, only 39% of those working with an adviser said they were “very confident” about having enough money for a comfortable retirement, compared to 13% of those not working with an adviser. Among those who were less confident, 20% of investors without an adviser were “very concerned” about having enough money for a secure retirement, compared to only 11% of those with an adviser.

Forty-four percent of investors with an adviser view volatility as a positive, if managed properly. By comparison, only 27% of investors without an adviser share this view.

Seventy-two percent of investors with an adviser are confident in their investments over the next 12 months, with 32% saying they are very confident. Only 52% of those without an adviser are confident in their investments over the next 12 months, and a mere 7% of those without an adviser are very confident. Sixty-one percent of those with an adviser plan to increase their contributions over the next five years. This is true for only 34% of those without an adviser.

Additionally, 60% of those working with an adviser think U.S. equities will offer the best opportunity over the next 12 months, compared to 44% of investors without an adviser.

Investors with an adviser are also more likely to diversify their portfolios. Thirty-one percent of those with an adviser believe that real estate offers a good opportunity, compared to 18% of those without an adviser. Twenty-four percent of those with an adviser point to domestic bonds (versus 13% without). Twenty-one percent of those with an adviser like gold and metals (versus 11% without), and 14% of those with an adviser like international bonds (versus 1% without).

“By helping investors focus on the long term, financial advisers can provide a steadying voice of reason,” says Thomas Hoops, executive vice president and head of business development at Legg Mason. “Investing can be a very emotional process, especially in times of market volatility, and an experienced financial adviser is often integral to keeping investors on track to achieving their goals.”

Research Plus Ltd. conducted the online survey of 1,000 investors who plan to invest a minimum of $50,000 over the next 12 months. It was fielded in July and August.

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