a closer look at online retirement planners
DESCRIPTION
This presentation is based on research from our recent 42-page Retirement Plan Monitor report – Retirement Planners: More than the Average Calculator. The report focuses on the online retirement planning resources offered to participants by leading plan providers. Inside, we take a high-level look at the key findings from the report and best practices from industry leading firms. The slide deck concludes with a set of recommendations for improving your firm’s retirement planning tools.TRANSCRIPT
PREPARING FOR RETIREMENT
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. A CLOSER LOOK AT ONLINE RETIREMENT PLANNING RESOURCES
AUTHOR: DREW MARESCA – SENIOR ANALYST, RETIREMENT PLAN MONITOR
DECEMBER 2012 RETIREMENT PLAN MONITOR REPORT
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ABOUT CORPORATE INSIGHT
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Connect With Us
Corporate Insight provides competitive intelligence and user experience research to the nation’s
leading financial institutions. For over 20 years, the firm has tracked technological developments
in the financial services industry, identifying best practices in online banking and investing, online
insurance, mobile finance, active trading platforms, social media and other emerging areas. There
are no assumptions in Corporate Insight’s work – we use live accounts at all of the firms we
research, providing our clients with unparalleled, unbiased intelligence on the competition.
For additional information on Corporate Insight, please visit www.corporateinsight.com/about-us.
Ben Pousty
Marketing Manager
212-832-2002 x-134
Drew Maresca
Senior Analyst – Retirement Plan
Monitor
212-832-2002 x-122
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ABOUT RETIREMENT PLAN MONITOR
Retirement Plan Monitor explores the actual participant experience offered by leading defined contribution plan providers. Utilizing live 401(k) and 403(b) accounts, the Retirement Plan Monitor research service continuously tracks and analyzes the online and offline user experience offered by your competitors. Our research focuses on website design and usability, online tools and transaction capabilities, education resources, client account documents, plan pricing, fees and more.
Retirement Plan Monitor Deliverables
Retirement Plan Monitor subscriptions are company-wide. A single subscription makes the service available to all employees without seat licenses or restrictions. The service includes a variety of deliverables that collectively provide a comprehensive look at the online plan participant experience being offered by your competitors and other leading plan providers:
Monthly Reports – In-depth reports that thoroughly examine key aspects of the online participant experience including account information, transaction capabilities, educational resources, account documents and more.
Monthly reports feature:
Detailed reviews and assessments of each Retirement Plan Monitor firm
Industry-wide best practices summaries
Actionable recommendations for improving your firm’s offerings
Monthly Updates – Comprehensive review of updates and changes to competitor plan participant websites with an emphasis on website design and usability, account information, transaction capabilities, interactive tools and more.
Participant Website Videos – Go behind-the-login and take a first-hand look at the online resources being offered to plan participants by competitor firms. Participant Collateral Materials – All collateral materials and communications that we receive are available for subscribers to view or download online. This includes statements, confirmations, newsletters, marketing pieces, disclosure documents and email communications. Competitor Matrices – Breakdown of the key online features offered by all 18 Retirement Plan Monitor firms. Analyst Access – Research support from our experienced Retirement Plan Monitor team. R
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TABLE OF CONTENTS
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Introduction
Key Findings
Industry Leaders
Recommendations
About Corporate Insight
INTRODUCTION
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BACKGROUND
This presentation is based on research from our recent 42-page Retirement Plan Monitor report – Retirement Planners: More than the Average Calculator. The report focuses on the online retirement planning resources offered to participants by leading plan providers.
Inside, we take a high-level look at the key findings from the report and best practices from industry leading firms. The slide deck concludes with a set of recommendations for improving your firm’s retirement planning tools.
FIRMS COVERED
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Our full Retirement Plan Monitor coverage group features 18 firms. The 13 firms highlighted below were reviewed in this report:
o ADP
o Aon Hewitt
o Fidelity
o Great West
o ING
o J.P. Morgan
o MassMutual
o Mercer
o Merrill Lynch
o New York Life
o Principal
o Schwab
o TIAA-CREF
o T. Rowe Price
o Transamerica Retirement Solutions
o VALIC
o Vanguard
o Wells Fargo
KEY REVIEW CRITERIA
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Accessibility
o Is the planner easy to locate upon login
o Does the planner generate in a new window
Inputs
o Does the planner consist of multiple steps
o Can clients upload data
o Are holdings- related inquiries made
Results
o Are results downloadable
o Is an action plan offered
o Is a link available for implementing changes
KEY FINDINGS
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WHAT CAN WE LEARN FROM THE INPUTS?
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62% of firms allow participants to include additional accounts in the hypothetical ran by the planner
38% of firms inquire about the expenses accrued by the participant either before or after retirement
Only 30% of planners inquire about the asset allocation and/or holdings of a retirement plan
Merrill Lynch Planner Inputs Screen
AUTOMATIC DATA IMPORT WIDELY OFFERED
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A majority of the planners (85%) automatically imported participant data from their retirement plans. The planners imported a range of information, including birthday, account balance and contribution amount.
Mercer My View Planner with Imported, Pre-Filled Inputs
PLANNER RESULTS ARE COMPREHENSIVE
12 of the 13 planners reviewed in this report used graphs to illustrate results
More than half of the planners (54%) feature a detailed action plan, suggesting specific actions to take to ensure a successful retirement
15% of firms embedded results on the participant's homepage, greatly increasing the visibility of the results
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My Principal Edge Milestones
SAVING RESULTS NOT AS EASY AS EXPECTED…
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Only 39% of firms allow participants to save results on the website and revisit them at a later time.
Less than half of the planners reviewed offer the ability to save results as a PDF
Fidelity Quick Check Results PDF
LEADERS
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FIDELITY
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Three planners online, each accomplishes a different objective:
1. Retirement Income Planner
2. Income Strategy Evaluator
3. Retirement Quick Check
Two of the three planners generate reports
All of the retirement planners import data from the participant’s retirement account
Retirement Income Planner allows participants to alter contributions
Income Strategy Evaluator Results
TIAA-CREF
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TIAA-CREF offers two planners:
1. Retirement Advisor
2. Retirement Income Planner
Retirement Income Planner allows participants to generate a report
Both planners allow participants to change contributions
Retirement Advisor – Pick Your Strategy
MERCER
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Mercer offers two planners:
1. My View Retirement Planner
2. My View Plus Retirement Planner
Both planners automatically import data from the participant’s retirement account
My View Plus Retirement Planner allows participants to save results, load old scenarios and update or finish a saved scenario
My View Plus Retirement Planner Results
RECOMMENDATIONS
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FIVE RECOMMENDATIONS FOR IMPROVEMENT
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1. Include time estimates for each planner
2. Assess post-retirement expenses within the hypothetical results
3. Generate downloadable reports
4. Assess holdings and/or asset allocation
5. Offer a results graph
About Corporate Insight
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Corporate Insight provides competitive intelligence and user experience research to the nation's
leading financial institutions. For over 20 years, Corporate Insight has tracked new developments
in the financial services industry through our syndicated Monitor research and consulting
services. We are known for our detailed, objective research, unmatched expertise, and emphasis
on the actual user experience. There are no assumptions in Corporate Insight’s work – we use
live accounts at the firms we track to benchmark their effectiveness across all major channels
and give our clients unparalleled competitive intelligence.
Corporate Insight is continuously tracking and identifying best practices in online banking and
investing, retirement, asset management, insurance, mobile finance, active trading platforms,
social media and other emerging areas. In the process, we have helped our clients -- which cover
the entire spectrum of the financial services industry -- to stay on top of industry trends and
improve their competitive position.
Our intelligence services are utilized by over 70% of the financial services firms on the Fortune
500. Our research and analysts are frequently cited in financial media outlets such as The Wall
Street Journal, Barron’s, Bloomberg, CNBC, Forbes and Financial Times and news publications
like the Associated Press, New York Times, Newsweek, TIME and USA Today.
CONTACT US
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CO
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Ben Pousty
Marketing Manager
212-832-2002 x-134
Drew Maresca
Senior Analyst – Retirement Plan Monitor
212-832-2002 x-122