As the retirement industry shifts focus from just saving to helping people use their 401(k) money wisely, a big question has come up:
Who’s best suited to guide participants—financial advisors or record keepers?
Here’s what’s happening:
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There are now over 121 million people in defined contribution plans and $12.4 trillion in assets—so the stakes are high.
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Advisors are buying wealth management firms to better serve participants and manage rollovers.
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Record keepers have the data and participant access through their portals—but many participants don’t even know who their record keeper is.
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There are three main participant groups:
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High-net-worth individuals (3%)
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Mass affluent (10%)
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Everyone else—including younger workers (HENRYs) and people nearing retirement
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Each group has different needs, and the industry must find ways to serve them accordingly.
The big takeaway?
Advisors and record keepers don’t need to go to war. Working together—with the right tech, data, and approach—can benefit everyone, especially plan participants.
Fred Barstein explores this topic in his latest article, “Will the Battle for 401(k) Participants Between Advisors and Record Keepers Heat Up?” — read it now to learn more.
