Are you missing opportunities to strengthen your client relationships by overlooking retirement plans?
Many health insurance brokers only focus on medical and ancillary employee benefits, leaving retirement solutions to financial professionals. However, today’s small and medium-sized businesses (SMBs) are looking for comprehensive employee benefits, including retirement options.
Brokers who proactively offer retirement solutions have a distinct advantage and are better positioned as indispensable partners.
This article explains how partnering with PrestigePEO to offer retirement solutions will empower you to deepen client relationships, increase retention, and differentiate you from other brokers.
In this article, you'll learn:
- Why SMBs often avoid offering retirement benefits despite employee demand.
- How retirement plans position your brokerage as a trusted benefits partner.
- Specific client benefits, such as SECURE 2.0 tax credits, you can highlight in client conversations.
- Strategies to start productive retirement conversations.
Armed with this knowledge, you can easily address client concerns, introduce strategic retirement options and elevate your brokerage’s value.
Why Brokers Miss Opportunities by Overlooking Retirement Plans
A recent NerdWallet study revealed a troubling gap in retirement savings among American workers. On average, workers under 35 have saved just over $49,000, and those aged 35–44 average roughly $141,520. Even workers nearing retirement (ages 55–64) average around $530,000, falling short of what they will likely need for a comfortable retirement.
Many businesses recognize this issue. They want to support employees by offering retirement plans but hesitate because of complexity, cost and administrative burden. Without broker guidance, your SMB clients may skip retirement plans, hurting their ability to attract and retain top talent.
As a broker, offering retirement solutions allows you to:
- Attract more SMB clients by offering a comprehensive employee benefits package that addresses financial wellness needs.
- Improve client retention by delivering essential retirement benefits.
- Differentiate your brokerage by expanding your offerings beyond health insurance.
Offering retirement options through PrestigePEO strengthens your brokerage’s value. Our retirement solutions help you deepen client relationships, improve SMB client retention and position your brokerage as an indispensable partner delivering strategic, competitive employee benefits.
Understanding PrestigePEO Broker-Supported Retirement Plans
PrestigePEO makes it easy for brokers to deliver retirement solutions to their clients. Our comprehensive 401(k) solutions provide SMBs the flexibility, cost advantages and administrative ease traditionally reserved for larger corporations, without additional complexity or excessive fees.
401(k) Plan Overview
PrestigePEO’s turnkey 401(k) plans specifically address SMB needs, offering:
- Flexible plan design: SMB clients can select from traditional pre-tax deferrals, optional Roth deferrals, Safe Harbor employer contributions and discretionary match options.
- Professional investment management: PrestigePEO partners with leading investment advisory firms, including Slavic401k, BKS Partners and The Baldwin Group, to provide professional investment guidance and advisory services.
- Transparent cost savings: Our approach combines multiple SMB clients, leveraging group buying power to reduce plan costs. SMB clients don’t incur plan document fees, audit fees, or ERISA legal fees.
Comprehensive Administration and Fiduciary Support
PrestigePEO manages all retirement plan setup and administration, providing SMB clients with:
- End-to-end management: From initial plan customization and onboarding through daily administrative tasks, we handle all aspects of retirement plan operations on behalf of SMB clients.
- Compliance and fiduciary support: PrestigePEO serves as co-fiduciary, handling 5500 filings, compliance audits, participant notices, fund remittance and ERISA counsel.
- Simplified experience: Your clients gain comprehensive, fully managed retirement solutions without requiring in-house resources or retirement plan expertise, allowing them to focus on core business activities.
Enterprise-Scale Retirement Benefits Accessible to SMBs
By leveraging PrestigePEO’s group purchasing power, SMB clients gain access to high-quality retirement plans typically reserved for larger corporations. This positions your brokerage as an essential strategic partner in talent acquisition and retention.
4 Ways Retirement Benefits Deepen Client Relationships
Expanding your offerings with PrestigePEO retirement plan solutions solidifies deeper, lasting relationships and positions your brokerage for sustainable, long-term growth. You’ll be able to:
- Increase client retention. When you offer your SMB clients retirement solutions through PrestigePEO, you become a strategic advisor, not just a transactional broker.
- Improve client satisfaction. Addressing broader employee benefit challenges increases client satisfaction, demonstrating your understanding of their strategic needs.
- Simplify the sales process. You do not need retirement plan expertise to confidently discuss solutions. PrestigePEO provides you with robust broker support, including dedicated sales tools, co-branded materials and education resources, to make retirement plan conversations simple, clear and compelling.
- Cross-sell potential. Adding retirement solutions opens the door to broader client conversations, allowing you to expand your offerings and apply cross-sell strategies tailored for SMB clients.
How to Position Retirement Solutions: Strategies for Brokers
Retirement planning can feel overwhelming for many businesses, especially if they don’t have dedicated HR teams. You can simplify these client conversations by knowing how to respond.
Use the following guidance to confidently engage your SMB clients.
Handling Common Client Objections
Cost Concerns and Affordability. Explain that PrestigePEO retirement solutions leverage aggregated purchasing power to deliver cost-effective plans typically available only to large companies. Highlight SECURE 2.0 tax credits that significantly offset retirement plan startup and administrative costs.
Complexity and Administrative Burdens. PrestigePEO’s dedicated team handles every aspect of plan administration, including payroll integration, fiduciary obligations, compliance testing, and government filings. This reduces administrative complexity for businesses.
Key Client Benefits to Highlight
When discussing retirement solutions with SMB clients, it’s helpful to be aware of these benefits:
- Tax Advantages Through SECURE 2.0. Tax credits offset SMB startup and administrative expenses, making retirement plans affordable.
- Recruitment and Retention. SMBs attract better talent and improve employee retention by offering retirement plans.
- Employee Financial Wellness. Supporting employees’ long-term financial health contributes to greater satisfaction and productivity.
- Reduced Fiduciary and Compliance Risks. PrestigePEO’s fiduciary support protects SMB clients, eliminating the need for internal retirement expertise.
Make Retirement Plans a Win for Your Clients and Your Brokerage
Retirement planning is now a standard part of employee benefits, even for SMBs. Offering broker retirement plan solutions through PrestigePEO allows you to address this client need without increasing your administrative burden or developing specialized expertise.
PrestigePEO’s collaborative, broker-first approach simplifies the entire retirement plan process. We provide comprehensive broker support, including training, educational resources, real-time quoting assistance, and co-branded materials. All designed to empower you to confidently introduce retirement solutions to your SMB clients.
Our dedicated team manages all technical aspects, fiduciary responsibilities, compliance obligations and administrative tasks associated with retirement plan setup and ongoing operations, allowing you to maintain focus on nurturing and strengthening your client relationships.
Find out how PrestigePEO’s broker-supported retirement solutions can help you deliver long-term strategic value, enhance client satisfaction and retention and differentiate your brokerage in an increasingly competitive market.
Connect with PrestigePEO today to learn more.
