The landscape of retirement plan management is constantly evolving. To understand the latest trends, Fidelity's recent Plan Sponsor Attitudes Survey offers a comprehensive look into what plan sponsors are prioritizing, what challenges they face, and how they are adapting. The survey, which gathered insights from nearly 1,200 decision-makers across various plan sizes, reveals a clear theme: simplifying the complex.
Plan sponsors are navigating a growing number of responsibilities and are increasingly looking for expert guidance and efficient solutions to improve participant outcomes. Check out our recent webinar for a live conversation on the insights below.
A significant finding from the survey is the near-universal reliance on financial advisors. An impressive 92% of plan sponsors now work with an advisor, a substantial increase from 68% when the survey began in 2008. This highlights a long-term trend: sponsors recognize the value an objective expert brings to the table.
However, satisfaction levels have seen a dip. While 69% of sponsors are satisfied with their advisor, this is down from 81% last year. The survey data suggests a strong correlation between advisor satisfaction and employee retirement readiness. Sponsors who believe their employees are saving enough for retirement are far more likely to be satisfied with their advisor (74%) compared to those who feel their employees are not saving enough (58%).
This leads to a crucial insight: the definition of value has shifted. When asked what they value most in an advisor relationship, the top answer for years has been "better participant outcomes." Sponsors are moving beyond a focus on their own fiduciary duties and are now prioritizing advisors who can demonstrably improve employee participation, increase savings rates, and ensure appropriate asset allocation.
The survey shows that plan sponsors are proactively making changes to their plans to drive better results for employees. In fact, only 12% of sponsors reported making no changes to their plan design in the past year.
The most impactful changes center on automation and boosting contributions. Features like automatic enrollment and auto-escalation remain powerful tools for overcoming participant inertia. As more companies adopt these features, the focus is shifting to optimizing them—for example, by increasing the default auto-enroll deferral rate from the typical 3% to a higher starting point. Sponsors are also increasingly reinstating or enhancing their matching contributions, recognizing them as a key lever for both attracting talent and encouraging saving.
On the investment side, the trend is toward simplification and cost-efficiency. Sponsors continue to add lower-cost options like index funds and Collective Investment Trusts (CITs). At the same time, they are navigating more complex, personalized solutions like managed accounts, which are now offered by 63% of plans surveyed. These customized products offer a "one-stop" solution beyond traditional target-date funds, but their complexity underscores the need for an advisor to help evaluate and implement them effectively.
With the increasing complexity of new products, legislative updates, and fiduciary responsibilities, it's no surprise that sponsors are feeling overwhelmed. The survey indicates that more than half of sponsors feel the pace of change for new products is speeding up and that it's becoming information overload.
This pressure is fueling a strong interest in outsourcing. Sponsors are looking to offload tasks that detract from their core focus on employee outcomes. The data shows:
This desire to delegate allows retirement committees to spend their valuable time on strategic initiatives—like improving retirement readiness—rather than getting bogged down in administrative details or routine fund performance reviews.
The latest Plan Sponsor Attitudes Survey paints a clear picture. Today's plan sponsors are more strategic than ever. They are leveraging their 401(k) plans as a primary tool to attract and retain talent, and their focus has decisively shifted from simple plan maintenance to driving meaningful outcomes for their employees.
To achieve this, they are leaning heavily on trusted advisors, embracing innovative plan design features, and strategically outsourcing to simplify their roles. As the industry continues to evolve, the most successful sponsors will be those who can effectively partner with experts to navigate the complexity and build a retirement plan that truly prepares their workforce for a secure financial future.
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