Plan Sponsors Seeking New Advisers for Help with SECURE 2.0 Changes: UBS Workplace Voice Report
Are you a plan sponsor looking to switch retirement plan advisers? You’re not alone. According to a recent report from UBS, many plan sponsors are seeking new advisers to help navigate changes from SECURE 2.0. In fact, more than half of senior level executives overseeing their firms’ retirement plans are highly likely to start working with a new financial adviser or retirement plan consultant within the next year.
One of the main reasons for this switch is the need for additional resources to manage retirement plans due to SECURE 2.0. With 63% of plan sponsors currently relying on their financial adviser for information about SECURE 2.0, it’s clear that expertise in this area is crucial. Additionally, plan sponsors are looking for advisers who can provide better quality of service and more comprehensive financial education for their employees.
Mike Griffin, head of workplace wealth solutions sales and relationship management at UBS, notes that the desire for more financial education assistance from advisers is a significant shift from the past. Plan sponsors are now recognizing the importance of helping employees with individual financial planning and wealth management, especially in light of inflation and the changes brought about by SECURE 2.0.
UBS’s report also highlights the positive impact of SECURE 2.0 on employers who are not currently offering retirement savings plans. More than half of these employers are now more likely to offer this benefit, citing reasons such as helping employees save more efficiently for retirement and attracting and retaining talent.
While SECURE 2.0 has been well-received by most plan sponsors, there is still a need for education on its provisions. Many employers are not fully familiar with the tax credits available to cover administrative costs or the timeline for when each provision will go into effect. With 90 provisions in total, the sheer magnitude of the legislation can be overwhelming for plan sponsors.
If you’re considering switching retirement plan advisers or simply want to stay informed about SECURE 2.0, be sure to sign up for PLANADVISER newsletters to keep up on the latest news and developments in the industry. And if you’re looking for a quick overview of the key provisions advisers need to know in 2024, be sure to check out the list compiled by PLANADVISER in collaboration with Groom Law Group, Chartered.
In conclusion, the changing landscape of retirement planning and the impact of SECURE 2.0 are driving many plan sponsors to reevaluate their adviser options. By staying informed and working with knowledgeable advisers, plan sponsors can better navigate these changes and provide their employees with the support they need to save for a secure retirement.
