October 15, 2025
With the backdrop of what can feel like an endless array of complexities in today’s investment world, the market for both complimentary and fee-based employer-sponsored investment advice is magnifying among DC plan participants. Per our latest DC Participant Planscape™ research, there’s resounding enthusiasm for employer-sponsored investment advice among Gen Zers and Millennials and increasing levels of interest among Gen Xers and 2nd Wave Boomers.
What’s Sparking Demand for Employer-Sponsored Investment Advice?
DC plan participants rank getting help investing within their retirement plans (45%) and one-on-one interactions with financial professionals (40%) as the biggest benefits of having access to employer-sponsored advice models. Reducing financial stress, help in determining retirement plan contribution levels that align with personal goals, and investment guidance during market volatility are lauded as additional advantages from at least one-third of participants.
To help providers aspiring to bring these solutions to market, we asked respondents how much they would be willing to pay for investment advice offered via their employers.
We found that the acceptable range for employer fee-based advice is $25 to $99 per hour, as participants would begin to question its quality below $25 and deem it too expensive above $99. In fact, the optimal price is $48—the precise intersection between when participants consider it becoming a bargain and expensive.
Even more telling? It’s not just wishful intent.
Participants are backing up their interest with greater reliance on financial advisors. Traditional advisor use continues to climb among Millennials (52% vs. 45% in 2024 and 34% in 2023). In turn, participants ages 29 to 43 are backing away from “adviced” models via online providers and firm reps (37% vs. 43% in 2023) and the self-directed approach to managing their assets (11% vs. 23% in 2023 and 15% in 2024).
Meanwhile, when asked to reflect on the convergence of their retail and wealth books of business last year, more than half of DC advisors (58%) agree they are committed to offering a holistic management approach to ensure participant retirement plans align with other investment vehicles. In addition, more than four in ten DC producers deem plan participants as an important revenue opportunity for their personal wealth management business, have a dedicated set of wealth products they offer plan participants, and are careful to ensure their respective advice aligns with recordkeepers.
In our upcoming 2025 Retirement Plan Advisor Trends™ study, we’ll continue to keep a close pulse on DC advisor perspectives as it pertains to participant advice and track the key components of plan participant service and types of financial wellness and participant education offered. Among an array of new questions this year, we’ll also be evaluating the most essential plan provider website capabilities for creating optimal participant engagement.
Our full DC Participant Planscape report offers firms a unique understanding of what drives participant contribution and investment behavior. It benchmarks the top plan providers on key satisfaction drivers and brand engagement metrics, monitors the brand perceptions of leading financial services providers and identifies the firms best positioned to capture rollover assets.
For more information, click below.
Sonia Davis
Senior Product Director, Cogent Syndicated
Sonia is a senior product director in Escalent’s Cogent Syndicated division, where she manages the firm’s defined contribution retirement suite of research with plan sponsors, plan participants and plan advisors. She has more than 15 years of quantitative and qualitative market research experience in financial services industry research, as well as the hospitality, consumer packaged goods and retail sectors. Prior to Escalent, Sonia served as a community manager for C Space, a public relations specialist for Putnam Investments and as a staff reporter for Community Newspaper Company. Sonia earned an MBA from Boston University School of Management and a bachelor’s degree in communications from Simmons University. She’s a proud finisher of the rainiest Boston Marathon on record (2018) and multiple sprint triathlons who now enjoys rowing (sweeps) on the Charles River and outdoor adventures with her husband, two daughters and black lab.
