Background: In May, the RRC fielded two surveys to plan sponsors and industry practitioners, including advisors, consultants, recordkeepers, and fintech providers, to explore the nuances of challenges in data privacy and sharing practices. These two new industry surveys (Phase Two) built on the findings of the Phase One SPARK/DCIIA RRC Data Privacy project, which examined three core components of the Phase Two project:

1. Appraise the feasibility of an industry-wide solution solving for data connectivity and standardization challenges

2. Identify the operational guardrails needed for practitioners to adopt a solution 3. Consider the potential benefits and implementational challenges of a solution

Data privacy and sharing protocols are growing in importance, particularly due to concerns over liability risks related to cybersecurity, data sharing and data usage. Retirement benefits are evolving into holistic plans encompassing employees’ health, financial and emotional wellness. As data privacy and sharing protocols evolve, new concerns have arisen. These include ensuring responsibility for safeguarding data, determining the scope of sharing and storage after service termination, and addressing the use of self-populated data provided by participants.

Findings: Both the practitioner surveys and in-depth interviews revealed a resounding interest in a standardized solution across all cohorts. Across each practitioner group, the majority of respondents reported:

71% of employers were interested in a standardized solution, with greatest interest from organizations with over $250M in assets.

100% of recordkeepers surveyed said a standardized solution would be helpful in addressing the existing challenges.

43% of advisors and 39% of consultants believed an industry solution would be ‘very helpful’with 100% agreeing that a solution would be helpful at any level (very, somewhat).

Bottom Line: 93% of surveyed employers offer financial wellness services despite growing concerns about safeguarding participant information. As our Phase Two survey results show, the industry is interested in a data privacy and sharing solution that solves existing connectivity and standardization challenges. The full Phase Two report will be available in the late summer and will feature more detailed findings related to this research.