Fidelity’s Advisor 401(k) platform is booming.
The platform, offered via third-party advisors to small- and mid-sized companies, recorded record growth in 2007, Fidelity says, with total record-kept assets ending 2007 at $21.2 billion, a jump from the $16.8 billion recorded at year end 2006. Also for 2007, 516 new plans were funded, Fidelity says, up 21% from 2006, and the 401(k) platform reached a new high for total plans serviced with 2,825, a 15% increase.
The Pension Protection Act, along with individuals taking more responsibility for their retirement savings, are driving the advisor-sold 401(k) market, Fidelity says.
Fidelity says it has seen increased adoption of automatic enrollment by employers. For instance, according to Fidelity: