The role of retirement plan recordkeepers is no longer confined to merely tracking contributions and investments. The industry has consolidated significantly, cutting providers from 400 to 50 over the past 15 years. These larger firms have tactically shifted from offering just services to being strategic partners with plan sponsors.

Traditionally, recordkeepers provided participants with essential account management tools to check balances and make investment changes. However, as participant needs become more complex, recordkeepers offer services to enhance the experience.

The challenge for recordkeepers is meeting these growing expectations while maintaining solid relationships with plan advisors. This article will discuss why recordkeepers must adapt and how they can do so.

Beyond the basics

Today’s participant expects more than retirement planning. With tech advancements and shifting demographics, their needs and expectations have evolved. Gen Z participants want easy access to information, user-friendly tools for managing their retirement accounts, and personalized guidance for making critical financial decisions. Traditional recordkeeping services are no longer sufficient to meet these demands. Therefore, recordkeepers must evolve and adapt to provide a more engaging participant experience.

Recordkeepers are widening their range of offerings, including financial wellness tools, investment management, and compliance services. Many recordkeepers are now prioritizing financial wellness programs that go beyond basic retirement education. Participants increasingly seek guidance not just on saving for retirement but also on managing overall financial health. According to PwC, 68% of employees utilize financial wellness services offered by their employers. It highlights the demand for comprehensive support.

The importance of participant experience for recordkeepers

Only 24% of active 401(k) participants feel very confident about maintaining their current standard of living in retirement, highlighting a gap in perceived financial security. Many participants need help understanding their retirement options and how to manage their savings.

An engaging participant experience distinguishes recordkeepers, making them a preferred choice for plan sponsors. According to research, four out of five employees prefer personalized help to make retirement decisions. A positive experience results in more engagement, higher contributions, and better retirement outcomes.

Recordkeepers must consider every touchpoint as an opportunity to strengthen their relationship with participants. Gen Z participants expect an omnichannel experience, whether connecting through a website, calling the customer service center, or attending a personalized financial planning session.

Investing in the participant experience also benefits plan sponsors and advisers. A satisfied participant remains loyal to their plan, reducing the churn that can complicate plan administration. For advisers, an enhanced participant experience means better participant relationships.

How can recordkeepers enhance participant experience?

Recordkeepers need to embrace innovation and technology to improve the participant experience. Here are some strategies to use:

  • Personalization: Data-driven insights help recordkeepers personalize communication and services for different participant personas. It includes interactive tools, gamification elements, and augmented reality features that make understanding complex financial concepts more intuitive. Recordkeepers can empower participants to make informed decisions about their retirement savings.
  • Seamless integration: Integrating with other financial tools and platforms allows recordkeepers to maintain accurate participant data and provide a holistic view of participant’s financial health.
  • User-friendly tools: Recordkeepers must prioritize user experience by offering intuitive interfaces and easy-to-use participant-facing portals that help them efficiently manage retirement accounts. Moreover, mobile access enables participants to manage their accounts easily.
  • Financial wellness programs: Financial wellness is becoming increasingly important for participants. Recordkeepers can offer comprehensive programs that cover various services, such as personalized advice, budgeting tools, and debt management resources. It helps participants feel more financially secure and engaged.
  • Adopting automation: AI-powered automation can streamline processes and improve participant experience. Automated systems enhance accuracy in recordkeeping and allow for real-time updates. It reduces errors and ensures compliance with regulations.

Elevate participant experience with Congruent Solutions

Congruent Solutions offers a range of API integrations that can seamlessly connect recordkeepers’ platforms with various financial wellness tools, educational resources, and advisory services. These integrations ensure that participants receive a cohesive, personalized experience. We also provide customized participant-facing portals where they can check their balance, attend a webinar, or engage in a one-on-one financial planning session.

Congruent Solutions also offers a flexible architecture to allow recordkeepers to customize their offerings based on the unique needs of their participants. We ensure recordkeepers do not only meet but exceed participants’ expectations. Our platform empowers recordkeepers to deliver the personalized, high-quality experiences that participants demand.

Contact Congruent Solutions today to deliver the high-quality experience your participants deserve.

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