Ubiquity Retirement + Savings "State of the Industry" Survey Reveals Top Concerns for Retirement Plan Decision Makers in 20231
Ubiquity Retirement + Savings'® (Ubiquity) first "State of the Industry" independent survey reveals rising inflation, an impending recession, and poor investment returns rank as top concerns among survey respondents. In its findings, the financial technology pioneer in flat-fee small business retirement plans asked financial advisors, retirement plan sponsors, participants, and solo 401(k) users about their top concerns for the performance of 401(k) plans in 2023.
Polling a collective 1,100 clients across the country in Q4 2022, results highlight a range of proprietary data that unveils the current state of the retirement industry from multiple perspectives.
"As we enter into a period of heightened economic turbulence, it's crucial for retirement plan sponsors, participants, and small business owners to take a close look at their 401(k) plans in order to ensure they are well-positioned in 2023," said Chad Parks, Founder and CEO of Ubiquity. "Our survey shows that there is reasonable concern among industry professionals and the clients they serve about retirement security in America."
Plan participant and solo 401(k) user findings
Among the surveyed plan users, Ubiquity found overarching concerns and trends moving forward into 2023. Participating 401(k) users responded in the following ways:
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34.2% of plan participants ranked saving enough money as their top concern for retirement.
- 57.7% do not currently think they are saving enough.
- 35.7% of solo 401(k) users agreed that saving enough is a top concern.
- 69.2% of plan participants expect to make no changes to 401(k) contributions.
- 60% of solo 401(k) users will also make little to no changes to their 401(k) contributions.
- 74.3% of plan participants will make little to no change to their risk tolerance.
- 52.5% of solo 401(k) users will make little to no change to their risk appetite.
"Our findings accentuate the reality of the retirement crisis," continued Parks. "The goal of a fairytale retirement is becoming less attainable, fueling a new wave of demand for better workplace benefits with savings offerings being a top priority."
Plan sponsor and financial advisor findings
Amid participating plan sponsors and financial advisors, Ubiquity unveiled institutional trends in workplace benefits. Surveyed users recorded the following responses:
- 82.1% of financial advisors reported that offering a 401(k) benefit is helpful in attracting and retaining clients.
- 86.7% of plan sponsors' responses corroborate that offering a 401(k) benefit is helpful in attracting and retaining talent.
- 72% of financial advisors expect little to no change in client 401(k) contributions.
- 70.3% of plan sponsors expect little to no change in participants' 401(k) contributions.
- 58% of financial advisors expect clients to have little to no change in their overall risk appetite.
- 50.6% of plan sponsors expect little to no change in participants' overall risk appetite.
"It's interesting that plan participants' desire to save enough to last in retirement does not equate to any expected changes to contribution rates across the board," said Parks. "Instead, plan participants are increasingly looking to employers to offer a retirement benefit to fuel their saving power. In addition, 28.7% of participants voted annuities as the top product they would like to see from us in the future, underscoring that savers are serious about building a lasting nest egg able to support a secure retirement."
Visit myubiquity.com to learn more about Ubiquity and their commitment to helping small business owners, employees, and individuals meet their retirement goals.
For additional information and survey results, please visit our website.
About Ubiquity Retirement + Savings
Since launching Ubiquity Retirement + Savings in 1999, the company's driving force has been to provide qualified retirement plans that meet the needs of small business owners. Our mission is to empower small businesses and their employees to create a more secure financial future by leveraging technology with affordable retirement solutions and world-class customer support.
Ubiquity is a leading fintech company that is one of the first flat-fee-for-service small business plan providers in the nation. With our exclusive, best-in-class Paradigm RKStm cloud-based platform that automates recordkeeping and plan management functions, we're able to deliver an easy-to-use experience and peace of mind with zero hidden fees. The company is headquartered in San Francisco with satellite offices from coast to coast. Ubiquity serves over 10,000 American small businesses and hundreds of thousands of savers. With over $3 billion in retirement assets, Ubiquity has clients in all 50 states, delivering a transparent, flat-fee2, customizable savings experience. Our tenured team are retirement experts and future-you champions!
Visit myubiquity.com to learn more.
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1 Ubiquity is not a registered investment advisor and no portion of the material herein should be construed as legal or tax advice. Please consult with your financial planner, attorney and/or tax advisor for advice.
2 Flat fees are charged by Decimal, Inc. for recordkeeping and administrative services. Third-party service providers may assess asset-based fees to customers. Plan sponsors are advised to review all service agreements with providers (e.g., investment advisors, custodians, broker-dealers) to evaluate total plan costs.
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