Participant Education and Advice The COVID-19 pandemic has elevated the perceived importance of investment advice and financial wellness offerings. This year, a record 85% of plans now offer some form of investment advice. Financial education was also more common and is now offered in 74% of plans, up from just 56% in 2017. Nearly all types of financial education saw year-over-year increases in their accessibility. Such growth is fueled in part by the near universal belief sponsors have in the benefits of financial wellness programs: Over 95% agree that such programs are " very useful " to participants. Investment Advice Offerings 52% 30% 3% One-on-one meetings with adviser Independent third-party services Recordkeeper's proprietary offerings Other source 15% 71% No investment advice Types of Financial Education/Guidance Offered Saving strategies Investing basics Rolling into plan - for new hires 53% 49% 42% Rolling out of plan - for separating workers 37% Credit/Debt management College saving Home buying Do not offer financial education 32% 27% 17% 26% When Offered, Financial Wellness Programs Are Very Useful to Employees/Participants Agree strongly Agree moderately Agree slightly Disagree slightly Disagree moderately Disagree strongly 38% 37% 20% 3% 1% 1% 68% 2016 2017 2018 Length of Relationship with Adviser l <1 year l 1 - 2 years l 3 - 4 years l 5 - 7 years l >7 years 54% 16% 3% 9% 18% 2019 2020 73% Adviser Usage The 2020 DC Survey found that 78% of defined contribution plans now work with a retirement plan adviser or institutional consultant, up from 68% in 2016, and 54% report having worked with their adviser for over seven years. Sponsors use advisers for a wide range of services, but those involving investment selection and monitoring are among the most common. Many sponsors choose to have advisers serve as co-fiduciaries for their plan, but smaller plans appear more open to 3(38) fiduciary services, whereby sponsors delegate the day-to-day investment decisionmaking to their adviser. Plans Using a Retirement Plan Adviser/Consultant 47% 78% 76% Plans Using Fiduciary Advisory Services n ≤$100mm n >$100mm 71% 48% 37% 19% 3(38) fiduciary 3(21) fiduciary 15% 10% No fiduciary status PLANSPONSOR.COM October - November 2020 27http://www.PLANSPONSOR.COM