The unstable financial markets in the United States have caused people to closely monitor their retirement accounts, increasingly turning to mobile apps for this purpose, according to a recent report by J.D. Power.
The study, called the 2023 U.S. Retirement Plan Digital Experience Study, shows that the improved performance of the markets has led to higher satisfaction with retirement plan digital tools. However, it also highlights the need for more work on mobile apps to differentiate and increase customer satisfaction, regardless of market conditions.
Craig Martin, managing director and global head of wealth and lending intelligence at J.D. Power, pointed out that while there has been a considerable increase in overall satisfaction with the retirement plan digital experience, there are still opportunities for improvement in the digital offerings.
Key findings from the study include the fact that overall satisfaction with retirement plan digital experiences has increased to 685 out of 1,000 this year, a 22-point increase from the previous year. However, only 38% of retirement plan participants rated their plans highly for their digital capabilities. The overall satisfaction level of retirement plans significantly lags behind other industries, such as wealth management, property and casualty insurance, and automotive.
The study also revealed that strong digital experiences have a positive impact on the bottom line. Retirement plan participants who rated their providers highly for their digital experience were more likely to roll over money from other retirement accounts.
Jonathan Sundberg, director of digital solutions at J.D. Power, emphasized the importance of mobile apps in customer engagement, retention, and asset acquisition. He noted that more clients are interacting with brands through mobile apps, leading to increased customer satisfaction and business growth.
The U.S. Retirement Plan Digital Experience Study, formerly known as the U.S. Retirement Plan Participant Satisfaction Study, measures customer satisfaction based on four factors: information/content, navigation, speed, and visual appeal. The study collected responses from 5,804 retirement plan participants and was conducted between May and June 2023.
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