Working with a retirement plan consultant can help you design and offer a competitive retirement plan benefit to attract and retain top talent. A good retirement plan advisor will also help you offer long-term financial planning services for your participants and create a plan that meets the needs of different generations.
A recent article from financial services firm HUB International explained how to choose a retirement plan consultant that can help your organization meet its unique retirement planning challenges. First off, HUB explained why plan fiduciaries should consider hiring a retirement plan consultant. The reasons included:
- Up-to-the-minute personalized advice
- Expert plan design and guided implementation
- Regulatory support from a retirement plan compliance consultant
- Performance monitoring and plan adjustments
Important qualifications to look for in a retirement plan consultant include someone who has had experience working with organizations like yours, whether it’s a large or small business. Certifications such as CFP, CFA, and CRPS are also desirable. HUB also suggested reviewing client testimonials and case studies to ensure the consultants you’re considering have a reputation for reliability and results.
Retirement plan consulting firms, industry associations, referrals, and online directories and review sites are a good place to start your candidate search. When evaluating candidates, be sure to ask about their years in the industry, the types of clients they typically serve, and their specific retirement planning expertise. If you have niche needs, such as a defined benefit plan, ask them about their experience within those areas as well. And vet their investment philosophy to ensure it aligns with your retirement plan liability risks.
In addition, assess their communications and compatibility with you and your staff to ensure transparency and a good working relationship. Fees should also be an important part of the vetting process. Ask about fee structures (do they charge a flat fee, hourly rate, or a percentage of assets under management, for example). Be aware that there may be unexpected costs associated with hiring a retirement plan consultant, such as travel or additional work that’s outside the scope of your arrangement.
Be sure to check their compliance and regulatory history. Tools such as FINRA BrokerCheck and the SEC’s Investment Adviser Public Disclosure can be useful to check for any disciplinary actions or complaints against your candidates.
Proper due diligence goes a long way when it comes to proactive retirement plan management. As you near a final hiring decision, be aware of red flags such as using unreputable tools or software in the consulting process, being suspiciously affordable, and lack of referrals. Rely on researchable information and facts, according to HUB. The most important thing to keep in mind when hiring a retirement plan consultant is that you want to make an informed decision that’s best for your retirement plan participants.
