Participants

TIAA Observes More Demand for Advice from Participants

Now that the online tools are available, approximately 10% of plan participants are receiving some form of advice from TIAA each year, a four-fold increase relative to an earlier period.

By Rebecca Moore editors@plansponsor.com | May 01, 2017
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Data from TIAA’s proprietary retirement plan business shows 4.89% (7,795) of the 159,522 participants sought advice about asset allocation at least once in 2014; 5.01% (7,994) sought advice about retirement income streams at least once in 2014.

According to the TIAA Institute’s report, “New Evidence on the Demand for Advice within Retirement Plans,” demand for advice (outside of wealth management) was much higher between 2012 and 2014 than it was between 2009 and 2011. TIAA says this structural break partly reflects the introduction of online tools, which are less costly for participants to access (and less costly for TIAA to provide) than in-person advice.

Now that the online tools are available, approximately 10% of plan participants are receiving some form of advice from TIAA each year. While this may or may not be the optimal level of advice, it is a four-fold increase relative to the earlier period. In addition, the fact that 9.71% (15,484) of the 159,522 participants sought at least one type of advice in 2014 implies there is relatively low overlap between those seeking advice about asset allocation (7,795) and those seeking advice about retirement income streams (7,994).

TIAA distinguished between contributors and non-contributors, and found significantly higher demand for advice from the sample of active contributors, especially with respect to advice about asset allocation.

NEXT: Demand for advice increases with age and account balance

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