While not very high, participants’ trust in retirement plan providers has risen to 11% this year, according to the National Association of Retirement Plan Participants’ (NARPP) Participant Trust and Engagement Study. Their trust in retirement plan providers had hit an all-time low of 8% in 2016. Confidence in their providers has also risen, to an all-time high of 24%.
NARPP says that trust in retirement plan providers is critical, as it affects plan participation, deferral rates and the use of plan tools.
“Engagement is grounded in emotional factors like, feeling secure, having confidence about the future and feeling in control,” says Laurie Rowley, co-founder of NARPP. “Trust catalyzes the efficacy of these emotional factors into improved financial decision-making.”
The study also found that participants’ satisfaction with the education and communication provided to them in their plan is at 46%, up from 43% in 2016. NARPP found that trust rises when participants believe that the information and education they receive is in their best interest, the education is easy to understand, their provider demonstrates an interest in their long-term financial security and helps them achieve their financial goals.
A full copy of the report, based on an online survey of 4,000 retirement plan participants, can be requested by emailing NARPP at Info@NARPP.org, or by calling 415-509-9687.
Trust in Retirement Plan Providers Helps With Financial Decisions
A survey from NARPP reveals factors that improve participants' trust in their retirement plan providers.
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