Change in the 401(k) and 403(b) market is often shaped less by plan sponsors themselves and more by the advisors who guide them. Advisors are most likely to recommend new products and services when those offerings create revenue opportunities, provide a competitive advantage or respond to clear client demand. That helps explain why solutions such as collective investment trusts, managed accounts, rollovers and participant financial planning have gained traction, while other valuable offerings have been slower to catch on.
The growing convergence of retirement, wealth management and employee benefits brings all three drivers together. It can help advisors expand revenue, differentiate their services and meet growing demand from employers and employees for more coordinated financial support. Ultimately, the goal is not simply to follow the latest industry trend, but to improve financial outcomes, strengthen employee loyalty and help organizations compete more effectively for talent.
Read more in this week’s WealthManagement.com article by Fred Barstein, “What Drives Change in 401(k) Plans?“
