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    90-10-90 RULE

    December 01, 2019

    If you, your plan, or your participants suffer from poor participation, low deferral rates, or shortsighted investment decisions, you are not alone. Here are three major obstacles that sponsors need to overcome to help produce better retirement plan outcomes!

    Major Obstacles

    Poor Participation
    Of the 8 out of 10 full time workers having access to an employer-sponsored retirement plan, only 65% participate.1

    Low Deferral Rates
    Deferral rates are climbing; the new average deferral rate = 6%.4

    Shortsighted Investment Decisions
    9 in 10 participants express regret about not doing a better job at saving for retirement.6

    Use the 90-10-90 Rule

    Aim for: 90% Participation Rate

    • Boost Participation with Automatic Enrollment!
    • The auto-enroll feature increases participation rates from 57% to 92%.2
    • 3 in 4 participants say YES to automatic enrollment at 6%.3

    Aim for: 10% + Deferral Rate

    • Boost Deferral rates with Automatic escalation.
    • 71% of employees enrolled in automatic annual increase programs choose to remain in them. 5
    • 4 in 5 participants say YES to automatic increases. 3
    • Boost Deferral rates with enhanced match formulas.
    • 3 out of 4 employees prefer a 3% match over a 3% raise in pay. 3

    Aim for: 90% Investments to be managed or use QDIA

    • Enhance investment glide paths with QDIA.
    • 4 in 5 participants say YES to (QDIA) re-enrollment.3
    • Reach out to employees who may have previously opted out of saving with re-enrollment.
    • 60% of participants say YES to retroactive automatic enrollment.3

    To review your company’s plan information and learn how applying the 90-10-90 Rule might help improve your
    organization’s retirement plan, contact us today.
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      1Barron’s 2024 Top 100 RIA Firms. Barron's© magazine is a trademark of Dow Jones L.P. The ranking of independent advisory companies is based on assets managed by the firms, growth, technology spending, succession planning, and other metrics.

       2 Retention Rate Source: Allworth Internal Data, FY 2022

      3 The NBRI Circle of Excellence Award is bestowed upon NBRI clients meeting one or both of the following criteria: Total Company score at or above the 75th percentile of the NBRI ClearPath Benchmarking Database and/or improvement of five (5) or more benchmarking percentiles in Total Company score over the previous survey. 

      4 As of 7/1/2024, Allworth Financial, an SEC registered investment adviser and AW Securities, a registered broker/dealer have approximately $22.5 billion in total assets under management and administration. 

      5 InvestmentNews 2020 and 2021 Best Places to Work for Financial Advisers. The ranking reflects survey responses and scores completed by both employers and employees. Employers report their organization’s workplace policies, practices, and demographics. Employees complete a survey designed to measure the employee experience. 

      6  2021 Value of an Advisor Study / Russel Investments

      7 Ranked 9th Top Wealth Managers By Growth in Assets in the U.S. from RIA Channel, 2022. RIA Database and RIA Channel are registered trademarks owned by Labworks, LLC.

      8 USA Today Best Financial Advisory Firms 2024. The ranking is based on the growth of the companies’ assets under management (AUM) over the short and long term and the number of recommendations they received from clients and peers.

      9 NBRI Best in Class Ethics 2023. The Best in Class level is bestowed upon clients performing at or above 90 percentile of the NBRI ClearPath Benchmarking Database.

      ✢ Scott Hanson, Investment Advisor 2005, 25 most influential people in the financial services industry. The ranking reflects 25 people who Investment Advisor magazine believes have had or will have the greatest influence on the financial services industry.

      ✼Pat McClain, InvestmentNews 2014, Invest in Others Community Service Award, presented to an advisor who has made an outstanding impact on a community through managerial contributions to a non-profit organization.

      †Financial Times, FT 300 Top Registered Investment Advisers, June 2019. The ranking reflects six areas of consideration including the company's years in existence, industry certifications of key employees, AUM, asset growth, SEC compliance record and online accessibility and calculates a numeric score for each company. 

      Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.