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In the fourth quarter of 2022, Ubiquity Retirement + Savings polled over 1,100 401(k) plan participants, plan sponsors, financial advisors, and solo entrepreneurs to take the pulse on their concerns about retirement planning as related to the economy and the state of their businesses. We also wanted a window into their predictions for 2023. The responses we received were somewhat surprising.
While many respondents showed similar concerns, there were also some disparities. The economy was a worry due to the volatility of macroeconomic forces like inflation and recession, and the resulting impacts on the stock markets and investment performance. However, respondents revealed that these fears did not move them to change their retirement planning strategies much, if at all.
Press Releases:
Ubiquity Retirement + Savings “State of the Industry” Survey Reveals Top Concerns for Retirement Plan Decision Makers in 2023
401(k) Plan Participants Rank Crypto Dead Last as Preferred Retirement Saving Asset
As related to impact on 401(k) plans, when able to choose multiple answers:
Nearly all groups felt somewhat prepared for inflation, recession, and poor investment returns:
Inflation impact & 2023 inflation expectations
Respondents had mixed feelings on the impact that inflation, recession, and poor investment returns will have on their business in 2023.
Wide divergence on where inflation will end up in 2023
Financial advisors (56.4%) and solo entrepreneurs (43.9%) expect inflation to decrease by the end of 2023 compared to where it was in Q4 2022.
Plan sponsors expect inflation to increase by the end of 2023 versus Q4 2022 (57.3%).
Interest rate increase expectations
Plan sponsors, financial advisors, and solo entrepreneurs all expect the Federal Reserve will raise rates two times in 2023.
Saving for retirement & 401(k) behaviors
57.7% of 401(k) plan participants currently think they are not saving enough for retirement. Solo entrepreneurs’ (35.7%) top concern about retirement is saving enough money ahead of retirement.
Despite worries about inflation, recession, poor investment returns, and not saving enough for retirement, no group is expecting a change in behavior when it comes to:
No interest in crypto in 401(k) plans
Plan participants rank crypto dead last as their preferred option for saving for retirement
(Respondents could select up to 3)
Why clients choose Ubiquity Retirement + Savings
Across the board, plan sponsors, financial advisors and solo entrepreneurs choose Ubiquity for our low, flat fees¹ and simple pricing. Plan sponsors love us for our outstanding customer service, which is ranked #1 on Google Reviews, Trustpilot, and the Better Business Bureau.²
Nearly 90% of plan sponsors report that offering a Ubiquity 401(k) is helpful in attracting and retaining talent.
Over 1,100 plan participants, plan sponsors, financial advisors, and solo entrepreneurs were surveyed in Q4 2022. Survey question answers were randomized and responders were anonymized for confidentiality.
Responses collected from plan participants implied that they are feeling overall less confident about their financial futures and are worried that they won’t have enough money to retire or that their money will run out during retirement. 58.7% of respondents feel they have average or lower financial literacy, which presents an opportunity to support them with education.
Press Release:
Plan Participants and Solopreneurs Focus on the Impacts of a Possible Recession, Inflation, and Low Investment Returns for 401(k)s in 2023
Plan participants’ overall top concerns for 2023 that could impact their 401(k)
(Respondents could pick more than one)
How prepared their company is for these concerns
How prepared do you feel your company is to face the challenges noted above?
How do you expect these challenges will impact your company in 2023?
Zero interest from plan participants in crypto for their 401(k)
Plan participants rank crypto dead last option for saving for retirement when asked “What is your preferred retirement savings option?”
(Respondents could select up to 3)
Saving for Retirement & 401(k) Behaviors
Plan participants don’t expect to change their 401(k) behavior in 2023.
Plan Participants’ Top Retirement Concern is Saving Enough Money Ahead of Retirement
Majority of Plan Participants Don’t Think they are Saving Enough for Retirement
Plan Participant Perceived Financial Literacy
Plan participants think they have average financial literacy.
Plan Sponsors generally feel ready to face macroeconomic challenges to their 401(k) plans, and most aren’t anticipating a negative impact on their business because of these challenges. Overwhelmingly, plan sponsors feel strongly that offering a Ubiquity 401(k) to their employees is a cost-effective way to attract and retain talent.
Press Release:
Ubiquity Retirement + Savings “State of the Industry” Survey Reveals Vastly Different Inflation Expectations Among Plan Sponsors and Financial Advisors in 2023
Overall top 3 concerns plan sponsors have for 2023 that could impact performance of their plan participants’ 401(k) accounts
(Respondents could pick more than 1)
How prepared do plan sponsors feel their business is to face the challenges noted above?
How do plan sponsors expect these challenges to impact their business in 2023?
Plan sponsor 2023 inflation & federal reserve interest rate hike expectations
By a wide margin, plan sponsors expect inflation to INCREASE by the end of 2023 compared to where it was in Q4 2022.
Plan sponsors expect two interest rate hikes from the federal reserve in 2023
Saving for retirement & 401(k) behaviors
Plan sponsors don’t expect participants to change their behaviors when it comes to managing their 401(k) accounts in 2023.
Usefulness of Ubiquity 401(k) in recruiting & retaining employees
Why plan sponsors choose Ubiquity Retirement + Savings
Financial advisors, even more strongly than plan sponsors, feel prepared to take on economic hurdles like inflation, poor investment returns, and recession. Being able to offer a Ubiquity 401(k) plan to clients is a valuable way for them to attract new clients, and they choose Ubiquity plans because the costs are low and the platform is easy to use.
Press Release:
Ubiquity Retirement + Savings “State of the Industry” Survey Reveals Vastly Different Inflation Expectations Among Plan Sponsors and Financial Advisors in 2023
Overall top concerns financial advisors have that could impact the performance of their clients’ 401(k) plans in 2023
(Respondents could pick more than 1)
Do you feel your advisory practice is prepared to face the challenges noted above?
How do you expect these challenges to impact your business in 2023?
Financial advisors 2023 inflation and interest rate hike expectations
The vast majority of financial advisors expect inflation to decrease by the end of 2023 compared to where it was in Q4 2022.
Financial advisors expect two interest rate hikes from the Federal Reserve in 2023.
Saving for Retirement & 401(k) Behaviors
Financial advisors don’t expect clients to change their behaviors when it comes to managing their 401(k) plans
Why financial advisors choose Ubiquity Retirement + Savings
Over 82% of financial advisors report being able to have a 401(k) offering from Ubiquity helps them attract and retain their clients.
Financial advisors choose Ubiquity because of our low costs and flat fee¹ pricing and how easy our platform is to use.
Perhaps the most confident group about their financial literacy, solo entrepreneurs are also quite prepared to handle business challenges in 2023. Most of these respondents are making no changes to their retirement contributions, but of those who are, most are not decreasing their risk tolerance. Ubiquity is a favored 401(k) provider to this group because of plan flexibility and options, as well as low pricing.
Press Release:
Plan Participants and Solopreneurs Focus on the Impacts of a Possible Recession, Inflation, and Low Investment Returns for 401(k)s in 2023
Overall top 3 concerns solo entrepreneurs have about 2023 that could impact performance of their 401(k) plan
(Respondents could pick more than 1)
How prepared do solo entrepreneurs feel their business is to face the challenges noted above
How do solo entrepreneurs expect these challenges will impact their business in 2023
Solo entrepreneurs 2023 inflation & interest rate hike expectations
Vast majority of solo entrepreneurs expect inflation to DECREASE by the end of 2023 compared to where it was in Q4 2022
Solo entrepreneurs expect 2 interest rate hikes from the Federal Reserve in 2023
Solo entrepreneurs’ top concern about retirement is saving enough money ahead of retirement:
69% of solo entrepreneurs rate themselves as high or very high when it comes to financial literacy:
Saving for retirement & 401(k) behaviors
Solo entrepreneurs don’t expect to change their behaviors when it comes to managing their 401(k) plans in 2023
Why solo entrepreneurs choose Ubiquity Retirement + Savings
Over 1,100 plan participants, plan sponsors, financial advisors and solo entrepreneurs were surveyed in Q4 2022. Survey question answers were randomized and responses were anonymized for confidentiality.
¹Flat fees are charged by Decimal, Inc. for recordkeeping and administrative services. Third-party service providers may assess asset-based fees to customers. Plan Sponsors are advised to review all service agreements with providers (e.g., investment advisors, custodians, broker-dealers) to evaluate total plan costs.
²An evaluation has been conducted by Decimal, Inc. through its research of independent customer reviews on Google, Trustpilot, and the Better Business Bureau as reported by unaffiliated contributors on or before September 30, 2022, with a revaluation date on January 12, 2023, resulting in an updated evaluation, for four similar small-business 401(k) providers in the marketplace.
© 2023 Ubiquity Retirement + Savings
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44 Montgomery Street, Suite 300
San Francisco, CA 94104
© 2023 Ubiquity Retirement + Savings
Privacy Policy
44 Montgomery Street, Suite 300
San Francisco, CA 94104