The workplace is poised to emerge as the predominant source of assets in the coming decade, as indicated by influential figures such as Morgan Stanley’s CEO, James Gorman. At a recent high-level roundtable in New York City hosted by WealthManagement.com, the defined contribution (DC) industry discussed the growing opportunities resulting from the intersection of wealth, retirement, and workplace benefits. Previously, broker/dealers struggled to effectively serve both specialists and wealth advisors due to limited resources and collaboration challenges with their wealth divisions. However, the tide seems to be turning.
Government mandates and tax incentives have led to an increase in small retirement plans, while wealth advisors can now delegate their fiduciary duties or utilize pooled employer plans (PEPs). As a result, wealth managers are no longer isolated but rather crucial players in this changing environment. These shifts have prompted discussions on reengaging wealth advisors, simplifying 401(k) comprehension for them, and streamlining the process. PEPs present promising opportunities for both retirement plan advisors (RPAs) and wealth managers, with significant topics encompassing retirement income solutions, managed accounts, personalized target date funds, data management, cybersecurity, and the integration of DC and personal assets. Additionally, ancillary services like student loans and emergency savings options are gaining recognition as tools to enhance engagement and set advisors apart.
