According to recent data from consumer research firms J.D. Power and Corporate Insight Inc, digital retirement platforms are playing a key role in increasing engagement and guiding rollover decisions for retirement planning participants. Both firms gave high marks to several firms that excel in providing a digital retirement experience.
Corporate Insight found that Fidelity, Empower, and TIAA were the top performers across desktop and mobile offerings, while J.D. Power ranked Capital Group/American Funds, Charles Schwab, and Bank of America (including Merrill) as leaders in digital plan experience. This positive feedback shows that retirement plan providers are meeting consumer demands and improving their digital offerings.
The overall satisfaction with retirement plan digital experience has increased 22 points to reach 685 on a 1,000-point scale, according to J.D. Power’s Retirement Plan Digital Experience Study. Mobile applications are gaining significant popularity, with 47% of participants downloading their retirement plan’s mobile app, up from 35% in 2021. Additionally, 38% have used the mobile app in the past 30 days, indicating increased usage.
Satisfaction with retirement plan mobile apps is significantly higher than that of mobile websites and desktop websites, scoring 728. This emphasizes the importance of a great digital experience in driving strong financial performance. Participants who have a positive digital experience are more likely to roll in assets from other plans and express loyalty to their current provider in case of job changes.
Despite these positive developments, retirement plans still have room for improvement in their digital offerings. Comparing satisfaction scores to other customer-facing industries like wealth management, property and casualty insurance, and automotive, retirement plans lag behind. However, this presents numerous opportunities for retirement plan providers to enhance their digital platforms further.
Digital experience is now a critical factor for plan sponsors when choosing retirement plan providers, as it directly impacts their ability to attract and retain clients. Recordkeepers are investing in digital advancements to meet participant expectations and separate themselves from competitors. Access to account balance information and ease of finding information are highly valued plan participants, along with additional resources and offerings for financial wellness and planning beyond their 401(k).
Overall, the increasing satisfaction with digital retirement platforms highlights the efforts of providers to enhance the participant experience. As technology continues to evolve, retirement plan providers must continually adapt and innovate their digital offerings to meet the evolving needs and expectations of participants.
– J.D. Power’s Retirement Plan Digital Experience Study
– Corporate Insight Inc’s report on digital retirement plan engagement: [Source Name]