Employee engagement programhelps financial advisors reach small business owners and increases retirement access for small business employees
Capital Group has announced thatICanRetire, the firm's award-winning employee engagement program1, will now be available for financial advisors to offer to small business owners alongside its 401(k) plan solutions, PlanPremier® and RecordkeeperDirect®.
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Capital Group is one of the leading providers of retirement plans2for small businesses, offering a range of 401(k) plan solutions and investment options to help small business owners and their employees pursue their retirement savings goals.Advisors can now offer Capital Group's ICanRetire program to small business owners alongside PlanPremier, a 401(k) plan solution with bundled plan administration or the option to collaborate with a third-party administrator, and access to American Funds® and other investment managers; or RecordkeeperDirect, a 401(k) plan solution designed for start-ups and smaller businesses with the flexibility to select a third-party administrator. TheICanRetireprogram can complement either offering to help improve participant outcomes and increase contributions at no additional cost to the financial advisor or the small business owner.
“Retirement planning is a huge market opportunity, and we want to be able to partner with financial advisors to make that achievable within their practices,” said Dana McCollum, President of Retirement Plan Services at Capital Group. “Simplifying the process is key – both advisors and participants want an easy button. By seamlessly integratingICanRetirewith Capital Group's small business retirement plan solutions, advisors gain a powerful tool to attract new business and help accelerate plan growth through increased participation and deferral rates. They're also helping the individual small business employee who may not have previously had access to a retirement plan, or who may not have been contributing enough.”
Recent industry and Capital Group findings highlight opportunities for both small businesses and financial advisors that offer retirement plans:
— Advisors specializing in retirement planning boast more than double the assets under management compared to their counterparts who do not sell retirement plans.3
— 97% of broker-dealer-based advisors oversee some portion of retirement assets, with nearly 44% of them actively seeking greater support from asset managers to cultivate more clients.4
— Employees who engage with ICanRetire were 3.4 times as likely to enroll in their company-sponsored retirement plan and 1.5 times as likely to increase their deferral rate.5
TheICanRetireprogram is already available to employers that have American Funds Target Date Retirement Series® in their investment lineup (in 401(k) or 403(b) plans). TheICanRetireweb experience is available to Capital Group'sPlanPremier and RecordkeeperDirect clients.
For more information, visithttp://www.icanretire.com/.
1 Capital Group developed MyRetirement (ICanRetire) with New Jersey health care company RWJBarnabas. The program aimed to increase engagement and participation among employees. RWJBarnabas Health with Capital Group won two awards in The Plan Sponsor Council of America's (PSCA) 2022 Signature Awards: First place in the “promoting participation” category and second place in the “overcoming obstacles” category. A panel of 20 business leaders evaluated and selected the winners of the 2022 Signature Awards from 68 entries in eight key categories.
2Plansponsor Recordkeeping Survey – June 2024 Plansponsor survey fielded from April to May of 33 recordkeepers of defined contribution (DC) plans that reported on their U.S. DC recordkeeping business as of 12/31/23.
3Cogent Syndicated Retirement Plan Advisor Trends – October 2023.
4The Cerulli Edge: U.S. Asset and Wealth Management Edition – February 2024.
5 Capital Group Participant Outcomes Data – July 2023.
About Capital Group
Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability since 1931.
As of September 30, 2024, Capital Group manages more than $2.8 trillionin equity and fixed income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups.These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
For more information, visit capitalgroup.com.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement, or a recommendation.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company, or fund. All other company and product names mentioned are the property of their respective companies.
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Media ContactNatalie MarinNatalie.Marin@capgroup.com(213) 615-4508
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