The relationship between Plan Sponsors and retirement plan advisors is undergoing a significant transformation. As we look toward 2026, the old model of vendor-style service is becoming obsolete. Plan Sponsors now seek advisors who act as true strategic partners, bringing proactive insights and measurable value to the table. The conversation is shifting from basic compliance and fees to a more holistic focus: improving participant outcomes and ensuring timely, dignified retirements.
Find a recent webinar discussing this topic here.
The expectation for advisors has evolved beyond simply checking boxes. Plan Sponsors need partners who can clearly articulate the impact of their strategies. Successful advisors will be those who enter meetings prepared to illustrate different scenarios. They can show the potential outcomes of maintaining the status quo, making targeted changes, or undertaking a comprehensive plan overhaul. This approach moves the advisor from a reactive vendor to an indispensable strategic guide, demonstrating a clear path from the plan's current state to its future potential.
The core objective is to improve the overall health of the retirement plan. This comes down to three fundamental goals:
Advisors who frame their recommendations around these key pillars will find their message resonates strongly with Plan Sponsors.
The era of one-size-fits-all retirement plans is over. Both Plan Sponsors and participants are demanding a higher degree of personalization, especially within default investment options. This customization is no longer seen as a luxury but as a core expectation.
This demand signals a clear opportunity for advisors. Moving beyond standard target-date funds and offering more tailored Qualified Default Investment Alternatives (QDIAs) can significantly enhance a plan's appeal and effectiveness. The focus must be on creating a more individualized experience that recognizes the diverse needs of the workforce.
To meet these evolving expectations, advisors must present innovative and actionable strategies that directly address plan health. It is no longer enough to discuss fees, funds, and fiduciary duties. The conversation must center on tangible actions that help participants achieve retirement readiness.
One powerful strategy is to pair an investment re-enrollment with a contribution re-enrollment. This dual approach can dramatically improve plan metrics. For plans that do not yet have an automatic enrollment feature, now is the time to add one with a default contribution rate of at least 6%. By forcing an active decision, participants are prompted to engage with their savings. If they take no action, they are automatically re-enrolled at the higher rate and moved into the appropriate QDIA.
This proactive method can help participants not only save more but also invest in a manner that aligns with their long-term goals. It’s a powerful combination that moves the needle on retirement preparedness.
Ultimately, Plan Sponsors in 2026 are looking for partners who share their commitment to employee well-being. The definition of a successful retirement plan is expanding. It's about more than just numbers on a page; it's about the real-world impact on employees' lives.
Advisors who can demonstrate how their strategies lead to better retirement outcomes – helping people retire on time and with dignity – will be the ones who win and retain clients in the years to come. The future belongs to advisors who can deliver on this deeper, more meaningful value proposition.
There is no guarantee that any investment strategy, program, or service offered by Sentinel Group will achieve its objectives, result in a profit, or avoid losses. Past performance is not a guarantee or reliable indicator of future results, and actual results will vary.
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