2020 was an exceptionally challenging year for small businesses, with the pandemic’s impact varying dramatically across industries and sectors. For example, the restaurant chain that was closed for months had a very different experience from the doctor’s office that had been busier than usual.
Amid the disruption caused by COVID-19, plan sponsors may have prioritized the business at hand over their retirement plans. However, there are useful tools at every financial professional’s (FP’s) disposal to help sponsors look beyond current uncertainties and position their plans for future success. As the COVID situation gets more in control, these tools can help FPs keep their relationships in good shape and strengthen their competitive advantage. And NOW may be the perfect time for FPs to think about positioning retirement plans for the long term.
Fees, investments and fiduciary risk management are standard fare in any meeting between an FP and plan sponsor. But good service can give FPs a real competitive advantage. As FPs face a growing competitive threat from state-sponsored retirement plans or other pooled plans, delivering valuable service to sponsor and participant will be a key differentiator. To do that,
With the end of the COVID-19 crisis in sight, now may be an ideal time to bring small business owners’ attention back to the benefits and responsibilities of a strong retirement plan. This can be done by:
At the end of the day, it’s all about participant outcomes. FPs can help sponsors focus on this goal.
Looking beyond pandemic-related uncertainties, we believe there are reasons for optimism, including a potentially strong economic recovery. With this recovery in sight, financial professionals have an opportunity to help plan sponsors/business owners shift their attention back to building and maintaining strong retirement plans.
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