A small change can sometimes lead to much bigger consequences. That’s the idea behind the butterfly effect, and it’s playing out across the retirement industry.
As more states require employers to offer retirement savings options, the number of workplace retirement plans is growing rapidly. But the impact goes well beyond creating new plans.
More employers offering retirement benefits means more employees saving, more opportunities for financial advisors and growing demand for retirement plan services.
It’s also changing how the industry operates.
Wealth advisors are entering the retirement plan market, third-party administrators (TPAs) are becoming more valuable, and newer technology companies are finding opportunities to serve smaller employers.
Meanwhile, traditional recordkeepers and providers are being pushed to rethink how they compete, particularly as technology and AI make it easier to serve smaller plans.
What started as an effort to expand retirement savings access is now helping reshape the entire industry.
Read the full article for more on how state retirement mandates are creating opportunities, challenges and lasting changes across the retirement industry.
