Paychex Adds LPL Financial's Employee Advice Solution to Further Serve Plan Participants
Paychex, Inc., one of the nation’s leading providers in retirement recordkeeping services for businesses, announced today that it has expanded its service offering with LPL Financial, a leader in the retail financial advice market and the nation’s largest independent broker-dealer. Paychex 401(k) recordkeeping clients who are supported by LPL advisors now have access to LPL’s Employee Advice Solution (EAS) to be able to offer tailored financial advice and education to plan participants through an online system.
With EAS, participants provide information on their current financial picture and can then engage with a financial advisor directly to receive personalized retirement advice or they can choose to manage their accounts on their own. They can also elect to receive advice all the way through retirement.
According to a Morningstar study**, people who use professional online advice for their retirement planning had better savings rates and amounts. For example, participants increased their savings rates by nearly 28 percent—an average of two percent of their salary — after using professional online guidance. In addition, 87 percent of the people studied acted on the recommendation to save more, which may result in more money at retirement.
“Paychex is committed to providing 401(k) participants with the tools and education they need to navigate the retirement planning process with ease, flexibility, and service at every step,” said Tom Hammond, vice president of corporate strategy and product management at Paychex. “The ability to offer plan participants access to financial advice from LPL Financial is another way Paychex focuses on helping our retirement services clients optimize this important employee benefit.”
With the addition of the Employee Advice Solution, Paychex now offers the full suite of tools and resources available within LPL’s employee Worksite Financial Solutions. Worksite is a guidance-based, beginning-to-end retirement solution designed to help employees create confidence in their financial life, offering retirement guidance, education, and managed accounts. Enrollment in Worksite is included with LPL’s Small Market Solution, which Paychex began offering to its customers in 2016. The Small Market Solution helps advisors and plan sponsors navigate fiduciary obligations while maximizing efficiency for small employers.
“We are proud to expand the scope of resources we provide to Paychex to create a deeper service offering for those employers and participants served by LPL advisors,” said David Reich, LPL Financial executive vice president and head of Retirement Partners, High Net Worth and the Private Trust Company. “The Employee Advice Solution is another example of how LPL puts the power of technology to work for its advisors by creating greater efficiency in their practices while providing an engaging way for employees to plan for their retirement with confidence.”
Paychex Retirement Services includes a full suite of retirement services designed to meet the needs of financial advisors and businesses of all sizes. In addition to extensive options for plan sponsors, Paychex Retirement Services also works with financial advisors to help grow retirement plan business through a dedicated team of wholesalers, sales representatives, and advisor support experts.
To learn more about 401(k) retirement plan administration from Paychex, visit www.paychex.com/retirement/.
** The Impact of Expert Guidance on Participant Savings and Investment Behaviors, Morningstar, August 2014.