The 401(k) recordkeeping industry stands at a pivotal moment. With $12.5 trillion in assets and 121 million accounts, recordkeepers are navigating intense pressure driven by:
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Shrinking margins from fee compression and rising operational costs
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Outdated technology unable to meet modern demands
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Growing partner expectations for secure, real-time data sharing
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The slow adoption of retirement income products due to fiduciary risk concerns
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The emergence of wealth-retirement convergence as a new opportunity
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Ongoing market consolidation and regulatory uncertainty
At the 2025 RPA Record Keeper Roundtable, industry leaders reached consensus: reinvention is no longer optional—it’s urgent.
Fintech challengers like Vestwell and 401Go are proving that modern, scalable platforms can drive growth and efficiency. Meanwhile, traditional recordkeepers must evolve their models to remain competitive in a marketplace increasingly defined by integration, personalization, and agility. As one leader noted, “Business as usual is not sustainable.” The time to adapt is now.
For deeper insights, read Fred Barstein’s latest column on WealthManagement.com: “401(k) Record Keepers Facing Existential Moment.”
