92% of plan sponsors work with an advisor, increasing from last year

Plan sponsors most value advisors’ ability to improve participant outcomes for four years straight

Fidelity Investments, in its 16th annual Plan Sponsor Attitudes Study released today, found that plan advisors continue to deliver meaningful value to sponsors and participants navigating today’s dynamic investment landscape.

Fidelity’s annual study, which surveyed over 1,100 employers offering retirement plans using a wide variety of recordkeepers, found that plan sponsors see advisor value as a blend of service and cost, with top priorities including improving participant outcomes, boosting employee satisfaction, and optimizing plan design to meet evolving company needs.

Sponsors’ satisfaction with advisors is strongly linked to participants’ retirement readiness; 74% of those who felt participants are saving enough for retirement reported high satisfaction with their advisors versus 58% for those who felt participants are not.

“Advisors have an opportunity to help plan sponsors cut through the noise, navigate change and ultimately help determine the best offerings for their plan participants,” said Christopher Alpaugh, head of Defined Contributions Investment Only Sales Group at Fidelity Investments.

Improving Financial Outcomes

Plan sponsors said their top concern is whether their plan is effectively preparing their participants for retirement financially. Plan sponsors said they would like their advisors to provide content and education about financial planning (38%), financial wellness (35%), retirement income (28%), and more in the next 12 months. Additionally, when considering overall employee engagement, about one-third (30%) of plan sponsors cited targeted education meetings for newer employees.

More than two-thirds (69%) of plan sponsors who implemented financial wellness programs said they were very impactful. However, only around half (54%) of employees are currently enrolled in financial wellness programs. The findings reveal efforts to increase impact of these programs: 93% of sponsors have implemented a financial wellness program—with 60% of those implementing a program within the last year.

Sponsor’s Changing Needs

Advisors can add value by helping plan sponsors understand and adjust plan designs to meet participants’ changing needs. Half of sponsors say the pace of change in retirement plans is exhausting and causes employee burnout.

As plan sponsors looked ahead to pending Secure 2.0 legislation, 94% of participants made at least one non-mandatory change, signifying a shift in focus for sponsors from compliance to enhancement.

Additionally, plan sponsors continue to navigate new products and investment menu options. Last year, plan sponsors selected the following investment products as relevant for their plans: Retirement income products (53%); Health savings accounts (HSA) (20%); Managed accounts (48%); Collective investment trust (CIT) (43%); New target date funds (37%); Pooled employer plan (PEP) (31%). As plan sponsors continue to navigate a dynamic environment, they will likely look to their advisors to play a key role in providing expertise and insights to help them develop a tailored retirement benefit best fit to meet their employees’ needs.

“We’re seeing plan sponsors seek more engagement from their advisors to impact participant saving and engagement, especially through financial planning and wellness programs,” said Alpaugh. “With investment menu options and compliance policies quickly evolving, it’s not surprising that sponsors are leaning on their advisors to be the steady hand helping keep participant success in focus.”

Retirement Readiness

The study revealed that fewer plan sponsors (67%) agree their participants are saving enough money for retirement compared to four years prior (68% in 2021 rising to 82% in 2024).

Sponsors said that their plan participants are finding it increasingly difficult to save more for retirement due to: living expenses (30%); health care costs (18%); education expenses/loans (11%); lack of education (10%); lack of discipline (10%); distrust of financial markets (10%); indecision/inaction (9%); other (1%).

The bottom line is that plan sponsors value advisors based on their ability to improve participant outcomes, ranked as the top advisor value for four years running. This includes areas such as increased savings rates, or improvements to employee asset allocation.

Fidelity’s Plan Sponsor Attitudes study is an example of how Fidelity’s interconnected, yet diverse business model gives the company unique insights into the industry. Additional information on the survey, as well as resources and tools—including fund analytics and details on investment options—can be found at go.fidelity.com/attitudes.

Plan Sponsor Attitudes Study: Methodology

The 2025 Plan Sponsor Attitudes Study was an online survey of 1,144 plan sponsors on behalf of Fidelity. Fidelity Investments was not identified as the survey sponsor. The survey was conducted during the month of January 2025. Respondents were identified as the primary person responsible for managing their organization’s 401(k) plan. All plan sponsors confirmed their plans had at least 25 participants and at least $3 million in plan assets. Though the survey is broad in scope the experience of the plan sponsors participating in the survey may not be representative of all plan sponsors. Previous Fidelity surveys were conducted in 2008, 2010, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, and 2024.

About Fidelity Investments

Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $16.4 trillion, including discretionary assets of $6.4 trillion as of June 30, 2025, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 79 years, Fidelity employs more than 78,000 associates across the United States, Ireland, and India. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company

Diversification does not ensure a profit or guarantee against a loss.

Investing involves risk, including risk of loss.

Unless otherwise expressly disclosed to you in writing, the information provided in this material is for educational purposes only. Any viewpoints expressed by Fidelity are not intended to be used as a primary basis for your investment decisions and are based on facts and circumstances at the point in time they are made and are not particular to you. Accordingly, nothing in this material constitutes impartial investment advice or advice in a fiduciary capacity, as defined or under the Employee Retirement Income Security Act of 1974 or the Internal Revenue Code of 1986, both as amended. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in the products or services and may receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services. Before making any investment decisions, you should take into account all of the particular facts and circumstances of your or your client’s individual situation and reach out to an investment professional, if applicable.

The registered trademarks and service marks appearing herein are the property of FMR LLC. Fidelity Investments^® provides investment products through Fidelity Distributors Company LLC; clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC.

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