The retirement and wealth worlds are moving closer together but getting them fully connected is proving easier said than done.
The opportunity is clear. As traditional plan fees decline, advisors and recordkeepers are looking for new ways to serve participants. At the same time, plan sponsors increasingly want employees to have access to broader financial guidance, not just those with enough assets to attract a traditional wealth advisor.
But there are still plenty of roadblocks.
Participant engagement remains difficult. Data can be fragmented, restricted or difficult to share. Legacy technology can make integration challenging, and many firms still lack the people and systems needed to deliver financial guidance at scale.
AI, new technology and financial coaching could help bridge some of those gaps, particularly by helping firms identify when participants need support and connecting them with the right level of advice.
The destination may be clear, but the infrastructure is still catching up.
