Small businesses and gig workers are opening a new lane in workplace retirement savings, but much of the industry is still driving with an old map.
As more small employers introduce retirement plans and more workers earn income outside traditional employment models, the market is becoming broader, more fragmented and potentially much larger. Yet the economics of serving these plans remain challenging. Smaller accounts often mean lower fees, while the administrative work, fiduciary responsibility and need for education remain substantial.
That tension is creating a test for advisors, recordkeepers, fintechs, payroll providers and other firms across the retirement industry. The opportunity is clearly there, but capturing it may require more than simply extending existing models downstream.
The firms best positioned for the next phase may be those that can use technology, existing client relationships and a broader workplace benefits strategy to serve smaller employers efficiently while connecting retirement savings to financial planning and other employee needs.
The road is getting wider. The question is who is actually built to travel it.
Read more insights in Fred Barstein’s latest WealthManagement.com article, “Small Businesses and Gig Workers Are Redefining Workplace Savings.(opens in new tab)”
