Benefits brokers’ responsibilities are very similar to those of retirement plan advisors; they are responsible for supervising any issues related to medical and insurance benefits, and, among other things, can conduct enrollment meetings.
Although many retirement consulting companies provide benefits brokerage services, along with their primary services, advisors can always collaborate with outside brokers for the best benefit of their clients. According to a recent Investment News article, there are many reasons to do that, for example:
- getting a better understanding of the clients benefits, because only by collaborating with a benefits broker, employees will be able to understand the total compensation they earn and how they can take advantage of it;
- assisting in acquisitions and mergers, as benefits brokers can provide some good advice on what could be the best strategy if, let’s say, employer decides to buy another company and plans to keep their employees on their current medical benefits;
- creating a better benefits strategy, since 401(k) advisors in partnership with client’s benefits brokers can always tell how benefits should be allocated to get a higher payoff
The best strategy for any 401(k) advisor is the one that will potentially bring the most value to their clients. Hence, collaborating with a benefits broker might be a great initiative in this process.