The defined contribution industry is buzzing with the potential for advisors and providers to leverage the convergence of wealth, retirement, and benefits at the workplace. This convergence offers immense opportunities, with over 110 million DC accounts and $11.3 trillion in assets, of which only 3% have a relationship with a financial advisor. Despite skepticism and challenges such as limited access to participant data, outdated technology, and high compliance concerns, there is a growing demand for financial planning and advice driven by a competitive labor market and economic uncertainties.
Employers are enhancing benefits with meaningful support and advice to attract and retain talent, and employees are increasingly receptive to these enhanced benefits. Studies show a significant portion of employees want and need financial advice, with many expecting it from their DC plan provider or advisor. The convergence of wealth, retirement, and benefits at the workplace could define the winners and losers in the DC world, as those who can effectively integrate and leverage these services will likely thrive in the evolving landscape.
To learn more, read Fred Barstein’s latest column in WealthManagement.com titled, “The Case For and Against the Convergence of Wealth, Retirement & Benefits at Work.”
