Data is the backbone of the US retirement plan industry. Without accurate and timely data, it would be difficult for retirement plan providers and recordkeepers to make sound decisions.
Technology helps derive insights from various data, including detailed information on plan sponsors, participants, assets, and investment options.
Sources of retirement plan data
- Recordkeeping solutions: Modern recordkeeping platforms frequently update data. These platforms also use AI and ML to monitor data carefully for accuracy.
- Industry comparison: Retirement plan providers maintain data that helps them compare their performance against other industry players. It helps improve their service models.
- On-ground research: Data can also be accumulated from client and peer interactions. It is useful for the review of industry-standard upgrades and opportunities to improve performance.
Seven ways data is crucial for retirement plan service providers
- Retirement plan benchmarking: Benchmarking allows retirement plan sponsors and fiduciaries to compare their plans against similar ones. This comparison can help identify areas where a particular plan may fall short. Additionally, benchmarking can help retirement plan sponsors and fiduciaries to develop best practices for their plans.
- Plan recommendation diagnosis: Understanding the available data can help retirement plan service providers make recommendations to improve the plan. The data can include participation rates, contribution levels, and asset allocation.
- Enhances efficiency: Incorrect information wastes time and resources. Eliminating outdated or incorrect data ensures the highest output quality and saves hours that would have been spent correcting it. Correcting retirement plan data errors is not only time-consuming, but it is also expensive. Clean data eliminates the chances of a penalty and the need for costly corrections.
- Reduces risk: Data plays a crucial role in the retirement industry by helping in risk assessment. For example, data can help identify potential problems with a particular investment or plan feature. Additionally, data can help assess whether a retirement plan will likely meet its objectives.
- Better business decisions: Use data to ensure appropriate pricing and service models. They must be aligned with industry best practices and fulfill client needs.
- Improve services: By using the correct data, retirement plan administrators can view reliable and accurate client information. Their performance can be analyzed to study plan metrics. Identifying service gaps and potential growth opportunities will help recordkeepers and retirement plan service providers to improve their offerings to boost client retention.
- Build trust: Data is vital in the retirement industry because it can help track trends. Providing data-based services and recommending the best solutions for clients helps improve their confidence in the service provider.
Technology helps maintain data accuracy
Data in the retirement plan industry must be accurate and consistent. Technology helps ensure rigorous checks and balances to ensure all data is up to date. Congruent Solutions offers industry-leading retirement plan administration software. It helps recordkeepers and retirement plan administration service providers harness the power of data.
Retirement plan administration software by Congruent facilitates effective decision-making, improves CX, and enhances efficiency. Contact our industry experts to make the best use of retirement plan data for the growth of your business.
