According to a series of
surveys conducted by Guardian, financial professionals have a significant
opportunity to grow their business in the micro- to small-plan retirement
market. According to analysis of Form 5500 data, ninety percent of all 401(k)
plans are small businesses with less than $10 million in total plan assets and
80% of all 401(k) plans are in the micro market, holding less than $2.5 million
in assets.
The surveys were conducted in
conjunction with a national series of interactive educational events for
financial professionals in eight major markets across the country. At the
conclusion of each of the events, 100% of respondents said they were likely to
take on more retirement plan business with the support of key partners to help
them effectively manage this business. Each of the events featured
presentations from investment management firms, recordkeepers, DCIOs, TPAs,
fiduciary support providers and financial behavioral experts.
Over half of survey
respondents at the (51%) view time management as a key challenge to doing
business in the retirement plan market followed by resource management (39%).
To lesser degrees, fiduciary responsibilities (27%) and government regulations
(23%) were cited as challenges.
401(k) assets are expected to reach $4 trillion by
2015 offering financial professionals a great opportunity to grow their assets
under management.