Voya’s Acquisition of OneAmerica: What Advisors Need to Know

AcquisitionVoya’s recent acquisition of OneAmerica’s retirement division is noteworthy, particularly due to the significantly lower price compared to previous industry acquisitions.  This deal highlights the ongoing consolidation in the defined contribution (DC) record-keeping market, where only a few major players are expected to dominate.  When a record keeper exits, competitors scramble to win over the clients left behind, leaving advisors in a tough spot.  Advisors are encouraged to stay vigilant, monitoring the behavior of top wholesalers, who may signal potential trouble for record keepers if they leave or reduce their sales efforts.

This consolidation is driven by rising technology, cybersecurity, and distribution costs, alongside the convergence of wealth management, retirement, and workplace benefits.  Out of the current 40 national record keepers, around 15 are projected to struggle in the competitive market due to a lack of scale, cross-selling capabilities, or unique distribution advantages.  Advisors must be proactive in assessing their partnerships with record keepers to avoid reputational damage if one of their key record keepers exits.

For further insights, explore Fred Barstein’s Wealth Management column titled, ‘How to Spot the Next 401(k) Record Keeper Likely to Exit.‘”

FOLLOW US:

Thank you for visiting our site!

TRAU, Inc. and its affiliates TPSU and 401kTV do not provide investment, legal, tax or accounting advice. 401kTV readers and viewers should consult their legal and tax advisors for guidance. All materials, including but not limited to articles, directories, photos, videos, graphics etc., on this website are the sole property of TRAU, Inc. and are intended for educational purposes only. We do encourage your sharing 401kTV content with Plan Sponsors; however, unauthorized use of any and all materials is prohibited/restricted.

Permission to use any of the materials, etc. on any of this site or affiliate websites may be requested in writing at [email protected] and may be granted in writing on a case by case basis. Use of all editorial content without permission is strictly prohibited.

Scroll to Top