Employers are becoming more helpful to employees when it comes to providing investment assistance, the results of a survey from Plan Sponsor Council of America said.
PSCA’s 61st Annual Survey of Profit Sharing and 401(k) Plans finds that tools like managed accounts and target-date funds continue to gain ground, with more than a third of companies now offering investment advice to participants.
Some of the ways that companies provide investment support to participants include offering managed accounts, target-date funds, automatic features/qualified default investment alternatives and personalized investment advice from professionals.
“Companies that offer investment support can help participants make better decisions for their financial future,” said Hattie Greenan, director of research for PSCA, in a news release announcing the results. “One-on-one counseling is a personalized method of advice delivery that can incorporate a comprehensive discussion on financial wellness.”
Results of the survey show that the use of professionally managed investments continues to rise, with nearly 40% of plans offering the service, up from 39% the previous survey and from 32% from 10 years prior.
The percentage of plans offering target-date funds has risen to 70.6% from 57.7% from 10 years ago, while the percentage of assets invested in target-date investments also has increased to 22.6% from 8.4% from a decade ago.
The percentage of plans offering investment advice to their participants is growing, too. Where provided, participants may have a choice among a telephone hotline, an internet provider, web conference and one-on-one counseling. One-on-one counseling is the most common method, now offered by almost 70% of the plans that offer advice, compared to 68.5% the year before and 58% 10 years ago.