529 Distribution Analysis 2015
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The 2015 study by Strategic Insight on 529 college savings plans indicates that financial advisers significantly influence plan sales and that the industry is expected to almost double by 2019. The report provides insights on adviser preferences and trends, including how they select and utilize college savings plans, and highlights the importance of product support and distribution strategies for providers. Key findings include the impact of different distribution channels and a strategic roadmap for advisers to enhance the use of 529 plans.
529 Distribution Analysis 2015
- 1. Strategic Insight, An Asset International Company / www.sionline.com / www.assetinternational.com 529DistributionStudy,2015 For additional information, contact Austin Ulep at 617-399-5629 or email aulep@sionline.com. Source Strategic Insight, Adviser Survey 2015 “Financial advisers are a significant driver of 529 plan sales, including direct-sold plans and the employer channel. Our annual proprietary adviser survey is the only research designed to show product providers how they can increase 529 plan usage and wallet share by financial professionals and their clients.” —Paul Curley, CFA, Director of College Savings Research, Strategic Insight The 529 college savings plan industry is projected to nearly double by 2019, providing a tremendous asset-gathering opportunity for plan providers, investment managers and advisers. This study provides essential insights and actionable steps for organizations to grow their market share by revealing how financial advisers choose and use college savings plans. Study Research Sources and Topics Strategic Insight’s 12th study on 529 plans is an in-depth qualitative and quantitative analysis of the trends that will drive industry growth over the next five years. In addition to using proprietary data, SI commissioned a new primary survey of financial advisers, spanning all types of distribution channels, compensation models, tenure ranks and asset levels. The results, in five sections, cover all of the key factors that impact college savings. • Historical Channel Sizing and Trends is an overview of historical 529 plan assets and net flows by distribution method, investor behavior towards college planning and the importance of reenergizing the intermediary channel. • Product Selection Preferences highlights trends in advisers’ perceptions of college savings, investment vehicle usage and 529 plan differentiators, providing the key drivers and that product providers can use to formulate more effective product, marketing and distribution strategies. • Distribution Preferences reveals the reasons financial advisers use both adviser- and direct-sold plans, and how 529 sales can benefit an adviser’s business beyond college savings investments. New: 2015 includes a section on the employer channel. • Support Preferences focuses on how product providers can increase 529 use and wallet share among advisers through enhanced product support, and how value-added practice management services influence advisers’ 529 selection process. New: 2015 features analysis of the advisor’s plan of choice, and why. • Strategic Road Map ends the report with an analysis of the propensity of advisers to recommend 529 plans going forward and what roadblocks they perceive as needing resolution. 529 Wallet Share: Percent of Client College Savings Assets in 529 Plans 0 60% 70% 80% 90% 100%50%40%30%20%10% 30% 25% 20% 15% 10% 5% 0 SI-529_Dist-Study_2015_p1.indd 1 11/23/15 3:42 PM