Nearly One-third of 401(k) Plan Sponsors Looking to Change Providers
By Hal M. Bundrick
NEW YORK (MainStreet)--Advisors adept at navigating the employer-sponsored retirement plan landscape may find greater opportunities in the months ahead. More plan sponsors are contemplating a switch in plan providers, according to the annual Retirement Planscape report issued by Cogent Research, a firm recently acquired by Market Strategies International.
In an abrupt reversal of attitudes from just two years ago, more plan sponsors -- nearly one-third (32%) -- are considering a change, while fewer (63%) say they have complete loyalty to their current provider.
Most of the potential movement is found in the smaller plan market, with 39% of micro (less than $6 million in plan assets) and 31% of small ($6-$20 million in plan assets) plan sponsors saying they are "somewhat likely to move to another plan provider in the upcoming year."One-quarter of mid-sized plans ($20-$100 million in plan assets) are considering a switch of providers, while the sponsors of the largest plans seem most content with their current provider. Only 14% of large ($100-$500 million) and 9% of mega plans ($500+ million) are thinking about making a move.
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