Harnessing the power of benchmarking can go far beyond simply helping to ensure retirement plan fees remain reasonable for plan participants. As an advisor, you can leverage benchmarking data in a number of ways to provide better, higher touch service to plan sponsor clients and propel the growth of your advisory practice.
Identify areas for plan improvement. Use benchmarking data to pinpoint areas in a plan that may need some attention. This can allow you to make adjustments aimed at optimizing plan performance — and participant satisfaction — such as seeking out lower cost investment options, more efficient recordkeeping and administrative operations, or expanded advisory services.
Evaluate plan competitiveness. Use benchmarking data to assess the competitiveness of your clients’ retirement plan in the market. Comparing factors such as fees, investment options and plan features to industry averages can help you ensure that employers are offering a differentiating and attractive retirement benefit to attract and retain top talent.
Support fiduciary decision-making. Benchmarking data can serve as a valuable tool for making more informed fiduciary decisions. By comparing plan features, fees and performance to broader industry standards, you can better fulfill your fiduciary responsibilities and help ensure compliance with regulatory requirements. Benchmarking data also provides a quantitative basis and documentation for evaluating and justifying the choices made by plan fiduciaries.
Enhance participant trust and education. Fee transparency is a crucial element in empowering participants to make more informed decisions about their retirement savings. Clear comparisons of 401(k) fees to industry averages or similar plans can help participants gain a better understanding of the value they’re receiving through their plan. Moreover, fee transparency can foster trust and encourage greater participation. Offering such information demonstrates your commitment to empowering participants and positions you as a trusted advisor — and the plan sponsor as a trusted partner — dedicated to helping them achieve their retirement goals.
Develop and implement a strategic plan. Benchmarking data can be instrumental in developing a comprehensive strategic plan for aligning a company’s 401(k) with organizational goals and meeting the unique needs of its participants. By analyzing benchmarking data, you can identify areas where adjustments can be made to better align the plan with the company’s long-term objectives and enhance participant outcomes. This might include increasing participation and contribution rates, expanding investment options and lowering costs.
Prospecting for new clients. Benchmarking data can be a powerful asset when prospecting to grow your book. With Prism Total Fees Benchmarking, Prism365 and RFP Express, you can quickly benchmark fee averages, drill down on compensation for advisory services, and even create real-time quotes to level up your advisory offering and win new business. PlanFees benchmarking solutions are available for licensing individually — or as an integrated part of the RPAG practice management platform.
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Unlock the full potential of benchmarking data with PlanFees to drive success for plan sponsors, participants and your professional practice. By expanding your use of benchmarking data, you can set yourself apart as a retirement plan advisor who goes beyond simple fee analysis and consistently delivers comprehensive, strategic and actionable insights to clients.
