RT Journal Article
SR Electronic
T1 Practical Applications of Do Advisors Improve 401(k) Plans?
JF Practical Applications
FD Institutional Investor Journals
SP 1
OP 4
DO 10.3905/pa.9.3.467
VO 9
IS 3
A1 David Blanchett
YR 2022
UL https://pm-research.com/content/9/3/1.15.abstract
AB In Do Advisors Improve 401(k) Plans? from the Spring 2021 issue of The Journal of Retirement, author David Blanchett of PGIM DC Solutions examines the impact that advisors can have on the management and performance of 401(k) plans. Whereas previous research has focused on investment-related outcomes, Blanchett takes a more holistic approach, exploring differences between advised and non-advised plans across a variety of domains.Blanchett begins with a high-level description of the role advisors play in the administration of 401(k) plans before identifying a base dataset of 401(k) plans. The ensuing analysis examines the base dataset in terms of the impact that advisors have on default investment availability and usage, plan governance, the adoption of automatic enrollment, the inclusion of employer securities, and fund diversity, before performing a more traditional investment analysis. Although the results of the analysis are not conclusive for larger 401(k) plans, Blanchett’s research suggests that advisors can add real value, especially for smaller 401(k) plans.