The 401(k) industry is buzzing about private markets, crypto, ESG, and PEPs, but these trends pale in comparison to the real forces reshaping retirement plans. The two biggest drivers of change today are the convergence of wealth and retirement services in the workplace and the explosion of new plan formation, much of it driven by state and federal mandates.
Convergence is redefining the industry as sponsors and participants look for holistic financial guidance while recordkeepers and advisors face fee pressure and search for new revenue. This shift raises tough questions—how to manage data, scale advice, and determine whether recordkeepers should compete with or support advisors. At the same time, new plan formation is pulling more wealth advisors into retirement plans as businesses look for help navigating their options.
The takeaway: improving outcomes and sustaining growth means focusing on structural issues like convergence and plan formation—not chasing the latest fads. For deeper insights, check out Fred Barstein’s latest WealthManagement article, “What Is Driving Fundamental Change to 401(k) Plans?”
