What Is a Retirement Plan Consultant and How Does Your Business Benefit?

What benefits do potential hires care about the most? According to recent statistics, retirement planning. Some 90% of workers look for company-sponsored retirement programs and professional planning assistance when choosing employment — or deciding whether to leave in search of greener pastures.

The services of a retirement advisor are invaluable for establishing an attractive, cost-effective, and trustworthy corporate retirement plan. Discover what a retirement plan consultant is and how to choose one that meets your needs.

What Is a Retirement Plan Consultant?

Retirement plan consultants are certified financial professionals who create, support, and manage employer-sponsored retirement programs. These advisors have experience in a variety of corporate retirement plans:

• 401(k) plans
• 403(b) and 457(b) programs for nonprofits
• IRA and Roth IRA accounts
• Pension plans
• Qualified programs (tax-reportable contributions with annual limits)
• Non-qualified (employer-funded contributions) and profit-sharing plans

Working with retirement planning experts provides effective solutions for small businesses, medium-sized enterprises, and large-scale corporations.

What Does a Retirement Plan Consultant Do?

A retirement plan consultant takes the weight off your shoulders when it comes to implementing, administering, and fine-tuning your company’s retirement offerings. Advisors can help with long-term planning, saving goals, tax strategies, investments, and personal wealth administration.

Plan Creation

If you don’t currently have a business retirement plan in place, one of the first things a retirement consultant does is help you build one from the bottom up. You receive expert advice regarding the type of retirement strategy to choose, the process of managing employee and employer contributions, and similar details.

Modifications and Improvements

Employee retirement plan consultants can also improve your existing benefits programs. A common example is transitioning from traditional business pensions to popular 401(k) programs.

Implementation

When defining what a retirement plan consultant is, you should expect more than a list of recommendations. Retirement advisors should offer practical help implementing the process, from answering employee questions to onboarding participants.

Regulatory Compliance

Employee benefits such as health insurance and retirement plans must meet federal Employee Retirement Income Security Act guidelines. A growing number of states make employer-sponsored retirement programs mandatory, including California, Colorado, Illinois, New Jersey, New York, and Oregon. A retirement plan fiduciary can help your business navigate regulatory compliance smoothly.

Investment Advice

Full-service retirement benefit brokerages often provide investment consulting and/or portfolio management services. Many 401(k) and IRA programs have an investing aspect for businesses, executives, and employees. Financial experts can craft enterprise-level or employee-personalized strategies.

Ongoing Management

Your company’s finances, goals, personnel, and employment needs can change over time. Dedicated retirement advisors can help you adapt to market changes throughout the year, offering practical solutions, keeping an eye on plan performance, and taking advantage of favorable opportunities.

Employee Support

Retirement plan administration also includes educating employees and helping them benefit from your organization’s benefits fully:

• Answering worker questions
• Scheduling one-on-one appointments to help individual employees
• Ongoing guidance for retirement planning
• Wealth management services for business executives

Modern training platforms make it easy for advisors to explain both the technical and financial sides of signing up for and managing retirement savings.

Why Hire a Retirement Plan Consultant?

For small businesses, partnering with a professional advisor for retirement planning is an easy decision. Many enterprise businesses are also discovering how advantageous it is to outsource corporate retirement planning to a 401(k) advisor or pension consultant instead of managing benefits programs in-house.

Industry Expertise

Certified retirement consultants often have many years or decades in the industry. They understand relevant laws, know helpful cost-saving strategies, and stay up to date with compliance requirements. Some bring specialized backgrounds in tax benefits or investing to the table.

Employee Satisfaction

Retirement plans are only a valuable perk if employees understand how to use them and manage savings wisely. High-quality consultant services give your workers a feeling of safety, control, and financial security. Ongoing support can lead to better retirement outcomes, and happy employees can persuade other top talent to join your team.

Expert Risk Mitigation

All retirement plans and investment programs hold a degree of risk. The key is to identify high-risk areas, mitigate potential dangers, and maximize your returns on investment. Customized retirement savings plans can match the level of risk tolerance participants are comfortable with.

Time and Resource Efficiency

Independent retirement plan administration can improve ROI and potentially save your business money in the long run. Streamlined 401(k) programs are less time-consuming for HR personnel and easier for employees to manage. Instead of juggling retirement planning with leadership responsibilities, business owners can focus on building a strong team with excellent clients.

Better Decisions

Retirement benefits consultants can help you find the best type of program for your business. Pensions and 401(k) plans have very different tax benefits, regulatory requirements, and risks. Blind decisions can expose your company to significant financial harm if banking or investment accounts fall through, but there are plenty of low-risk solutions.

How To Choose the Right Retirement Plan Consultant

The real question is what a retirement plan consultant is to your business. Only you can decide which services are most valuable for your objectives.

When selecting a retirement advisor, focus on six main factors:

1. Credentials: Certified financial planner, retirement income certified professional, chartered financial analyst, or other financial services accreditations
2. Qualifications: Unique services or advantages, such as significant tax law expertise
3. Experience: Level of experience administering retirement plans in your industry and for organizations of your size
4. Track record: Specific outcomes, data, and success statistics, such as lowering costs, increasing the value of investments, or drastically improving employee adoption rates
5. Services offered: Targeted or broad retirement planning services that align with your company’s goals and budget for employee benefits
6. References and testimonials: Verifiable reviews or contact numbers from well-known businesses in your industry that recommend the consultant’s services

Customizable retirement planning is more effective than rigid packages. Ongoing management services cost more than simple advisory consultations, but the value to your business is far greater.