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The Value of Investment Advice to a 401(k) Plan

Published by Kim Moore on Sep 28, 2020 6:00:00 AM

A recent survey by Charles Schwab Retirement Plan Services of adults age 25 – 70 found that those that used the services of an investment professional to make investment decisions regarding their 401(k) Plan, are more confident in their Plan to provide retirement income than those that didn’t. The survey indicated that half of those surveyed believed they could benefit from such advice.presenting_to_audience_22437 (1)

Most survey respondents were concerned regarding the amount needed to retire securely. They indicated information on anticipated tax expenses in retirement, how much they need to save, figuring out when to retire and how to have an income stream during retirement were top concerns. Also, the survey respondents indicated they were unsure how long their retirement would need to last. The average response was 24 years.

What does this mean to you as a Plan Sponsor? The value of offering investment advice to your Plan participants should not be underestimated. If you have a Plan advisor for the Plan ask them to offer their services to participants to help make investment choices. Discuss with your Plan service provider the retirement planning materials available on the Plan participant website. There may be other options available for a small charge. Also, ask your participants what type of help they would prefer. Getting your employees and Plan participants involved in their own retirement planning helps them to take advantage of the benefits your Company offers and removes concerns they may have regarding their financial planning.

Do you need an audit for your 401(k) Plan? Consider a specialized firm like Summit CPA Group. We can provide a quality benefit plan audit that is efficient and accurate. If you would like to discuss our audit process in more detail contact our office at (866) 497-9761. We also offer flat-fee pricing so there are no surprises on your bill when the job is complete.

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