Don’t aim for average
This year, many Plan Sponsors will undergo the process of benchmarking their plan to determine how they measure up with their peers, and decide if the services they receive for the fees they are paying are reasonable. Benchmarking plans to the industry averages can be an exercise in mediocrity.
If you are an average plan in the U.S. you would likely have insufficient participation, low savings rates, and too many poorly diversified participants. Is this what we should strive for?
I think not…. The truth is, in our personal lives we all strive to reach our full potential in all of our endeavors. As qualified plan professionals we have the responsibility to guide our clients towards being better each and every day. One of the most important things you can do to help your clients improve their plan is to understand the plan and participant objectives they are striving for.
Similar to how we encourage advisors to have conversations with their clients about how they envision their retirement lifestyle, we believe that a comprehensive governance approach starts with the end in mind and then works back to the present state to map out your engagement with the sponsor.
Here is what this process might look like
Using this approach in conversations with your clients and prospects can lead to a deeper level of engagement and success for years to come.
Tags: DC plans