An overhwhelming 91 per cent of advisors currently offering retirement plans such as 401(k)s and 403(b)s are only accommodating the business as part of their broader wealth management offering, according to new research from Fidelity.

An overhwhelming 91 per cent of advisors currently offering retirement plans such as 401(k)s and 403(b)s are only accommodating the business as part of their broader wealth management offering, according to new research from Fidelity.

(The finding is based on a survey of 1,700 Fidelity Institutional Wealth Services clients).

The firm believes this presents numerous challenges, with many so-called “accommodators” reporting that it is difficult to keep up with fiduciary rules, build scale and grow relationships.

In light of this, Fidelity Institutional Wealth Services, a custodian for registered investment advisors and third-party record-keepers, has rolled out Retirement Plan Growth Strategies, to help RIAs grow their retirement plan business.

“Retirement planning is not an accommodators’ business for the long-term – advisors who expect to only accommodate plans will not be able to compete with those who are dedicating real time and resources to it,” said Meg Kelleher, executive vice president and head of the retirement advisors and recordkeepers segment at Fidelity Institutional Wealth Services.

“Fidelity’s new offering helps RIAs with only a handful of retirement plan clients understand the real opportunity they present and helps get them on the path to accelerating their retirement business,” Kelleher said.

According to Fidelity, 84 per cent of plan sponsors relied on advisors in 2013 (up 9 percentage points from 2012), while 60 per cent of “high-performing retirement advisors” expect to at least double their retirement business in the next five years. (The 2013 Fidelity Plan Sponsor Attitudes Survey was conducted in March 2013 and included 937 plan sponsors).

Fidelity said its new program helps RIAs realize how their fee-based model, fiduciary experience and investment expertise puts them in a unique position to grow this part of their practice.

The program takes RIAs through a three-step process:

1. Diagnose to determine if retirement plan clients are right for their firm;

2. Develop a “deliberate approach”; and

3. Deliver and make connections.

Through the program, advisors gain access to Referral-EDGE for RetirementSM, a prospecting tool which provides insights into advisors’ existing clients and detects qualified prospects and referral connections.

As the Baby Boomer generation retires, advisors will need help managing the transition of billions of dollars from retirement plans into rollover IRAs, Pershing, a BNY Mellon company, said in a white paper late last year.