Employer-sponsored retirement plan participants want to hear from their plan advisors, but advisors aren’t reaching out, according to a new survey by Vestwell.
Only 41% of retirement plan participants said an advisor contacted them in the past 12 months, even while the market plunged in March and millions of Americans faced unemployment. Seven percent of the survey’s respondents tapped retirement funds for a loan, hardship distribution or both, according to the report.
“Advisors have a front seat to driving impact across participants,” the Vestwell report said. Seventy percent of survey participants wanted to hear from their plan advisors.
In November, Vestwell surveyed 1,006 individuals eligible to participate in employer-sponsored retirement plans.
Among those who wanted to hear from advisors are segments of the population hungry for information, because they are aware of the importance of certain financial topics.
The survey found that nonwhite retirement plan participants are saving for their retirement at low rates, a reflection of “systemic issues affecting minorities’ 401(k)s.” With just 16% of Hispanic/Latino respondents and 11% of Black respondents indicating they’ve saved more than $50,000 for retirement, compared with 39% of white respondents hitting the same milestone, “there’s a looming crisis when it comes to retirement savings,” the report stated.
But while their savings rates may be lower, Hispanics/Latinos and Black respondents are more likely to be interested in learning how to invest and learning the benefits of saving than their white counterparts.
“While 2020 is almost over, the impact of this year is still making waves,” the report concluded. “It is essential that retirement plan advisors acknowledge these trends and the acute impact this year has had on many Americans’ financial situations.”