After decades of unbundling recordkeeping, advisory, and investment services, the 401(k) industry appears to be moving back toward re-bundling as consolidation and wealth-retirement convergence accelerate. Empower’s CEO, Ed Murphy, recently confirmed interest in acquiring a national RIA firm—a move that would combine recordkeeping, wealth management, and advisory services under one platform. With 19 million participants and $100 billion in its Personal Capital division growing 25% annually, Empower’s integrated model could recreate the full-service dominance once seen in Fidelity’s 1990s heyday, where controlling the platform, data, and participant experience drove growth.
Other major firms are following similar paths. Morgan Stanley, JPMorgan Chase, and Raymond James are developing private-label recordkeeping or bundled solutions, while Ascensus and fintech/payroll providers like Gusto are building convergence capabilities that appeal to small and mid-sized plans seeking simplicity. As asset managers without proprietary target date funds seek new bundling opportunities, the lines between wealth, technology, and retirement services continue to blur—signaling a clear shift toward integrated ecosystems where controlling both assets and advice defines the next competitive advantage in the 401(k) market.
Read more, in Fred Barstein’s most recent Wealth Management article, “Is the 401(k) Industry Re-Bundling?“
