DC Plan Advisors Driving Financial Wellness Program Adoption

Fact-Based Trends from Cogent Reports™    

Faced with increased pressure to demonstrate added value, DC advisors are offering financial wellness programs more frequently. Financial wellness programs, which are designed to educate employees about how to manage their personal finance challenges such as debt reduction, asset management, unexpected expenses as well as saving for retirement, are starting to soar in popularity.

Nearly four in ten (38%) DC advisors incorporate financial wellness into their offerings, a significant increase from the 29% who reported doing so in 2016. Emerging DC advisors (managing less than $10M in DC assets) and Independent producers are driving the overall increase in financial wellness program availability.

Financial Wellness Program Availability | Cogent Reports

Perhaps even more strikingly, the way advisors are designing financial wellness programs appears to be shifting, with a higher proportion of DC producers using their firm’s proprietary model in lieu of a plan provider program. In fact, nearly two-thirds (64%) of DC advisors offering financial wellness programs rely on their advisory firm’s proprietary model, a significant increase from 44% reported in 2016. This trend not only signals a desire for advisory firms to differentiate themselves but also a potential missed opportunity on behalf of DC plan providers to create programs that meet the expectations of DC advisors and, ultimately, plan participants.

Types of Financial Wellness Program Offered | Cogent Reports

For more on the participant view of financial wellness programs, read another recent article.
Read Bridging the Gap in Financial Wellness

This entry was posted in Brand and Messaging, Financial Services and tagged by Sonia Sharigian. Bookmark the permalink.
Sonia Sharigian

About Sonia Sharigian

Sonia is a product director for Cogent Reports with more than 10 years of experience in journalism, marketing and research. She has managed numerous qualitative and quantitative studies in the financial services industry, as well as the hospitality, consumer packaged goods and retail sectors. Prior to Market Strategies, Sonia served as a community manager for Communispace Corporation, where she helped major brands generate game-changing insights via online communities. She also worked as a public relations specialist for Putnam Investments and as a staff reporter for Community Newspaper Company. Sonia earned an MBA from Boston University School of Management and a bachelor’s degree in communications from Simmons College. She is an ardent Patriots fan who recently became hooked on sprint triathlons.

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