Updated with correction.
In Fidelity Investments’ latest Plan Sponsor Attitudes Survey, 69% of plan sponsors with up to $10 million in assets were satisfied with their advisers in 2020. The percentage was incorrect in an earlier version of this story that ran in the July 27 P&I Daily.
The number of plan sponsors looking to drop their advisers more than doubled in the past year, according to Fidelity Investments' latest Plan Sponsor Attitudes Survey.
About a third (34%) of plan sponsors reported that they wanted to switch advisers, up from 16% in 2020, the survey found.
The desire for better employee communication and education was the top reason plan sponsors wanted to change advisers, with 15% of sponsors citing that as the reason for their intended move. Others were looking for lower stated fees (13%), more retirement plan expertise (11%) and a better investment lineup (10%).
Overall, 73% of plan sponsors were satisfied with their advisers, up from 70% in 2020, and 69% agreed they were getting good value from their advisers, up from 67% in 2020, according to the survey.
Adviser satisfaction levels among small plan sponsors with up to $10 million in assets, however, fell from the previous year, with 66% reporting they were satisfied, down from 69% in 2020. Their perception of adviser value slid even more sharply, falling to 61% from 71% the year before.
"Plan advisers should take an active role in engaging both plan sponsors and their employees to emphasize the value of their plan and educate them to help improve outcomes," Liz Pathe, Fidelity Institutional's head of defined contribution investment-only sales, said in a news release announcing the results of the 12th annual survey.
The study, which was conducted in March, surveyed 1,169 plan sponsors using a variety of record keepers. Plan sponsors surveyed had at least 25 participants and at least $3 million in plan assets.