Almost 60 percent of defined contribution plan participants have a written financial plan from their primary advisor, and their satisfaction with the financial plan is extremely high.
The Spectrem research report Advisor Usage Among DC Plan Participants shows that 96 percent of all plan participants with a financial plan admit to being, at the very least, somewhat satisfied with their plan. Fifty-two percent report being “very satisfied’’ and 24 percent are “satisfied’’ according to the survey.
Only 24 percent of 401(K) participants have received advice on creating a financial plan from their primary advisor, but 35 percent say they will be seeking that advice in the future. Thirty-two percent claim they do not need financial plan advice at this time.
Obviously, younger investors are less likely to have a financial plan in place than older investors, but 48 percent of 401(K) participants under the age of 35 say they will be seeking advice from their primary advisor on a financial plan in the future.
Even among investors with the highest plan balances, there is only a small percentage that have received a financial plan from their advisor. Twenty-seven percent of those with a balance of over $100,000 already have a plan in place, while 35 percent say they will seek out that information. Twenty-eight percent say they do not need that type of advice.
Keeping an eye on a financial plan is a good idea for any type of investor, and 46 percent of plan participants who have a financial plan review it with their advisor semi-annually. Thirty-four percent have annual reviews, while 16 percent review it less frequently than once a year, and 5 percent never review it.
The older the investor, the more frequently he or she has a review of the plan. Seventy-two percent of plan participants 65 years of age and older have reviews semi-annually, while only 38 percent of participants 35 years of age or younger look into their plan every six months.
Fifteen percent of participants aged 35 and younger never review their financial plan.