News Archive

"The 401(k) record-keeping business is at a major crossroad. On the one hand, plan fees continue to decline, which, coupled with rising demand for service and costs, seems untenable. On the other hand, the opportunity to offer wealth services to the over 100 million active participants, either alone or in partnership with advisors, is immense."  MORE >>

"Artificial intelligence is often framed as an emerging capability. For organizations focused on long-term growth, it is increasingly becoming part of the operating model.... Work that used to take hours each month has been reduced to minutes. Not through a single tool, but through connected automations that remove friction at each step."  MORE >>

"Retirement plan advisors are no longer evaluating PEPs (pooled employer plans) as a new concept. They are working in a market where adoption is rising, assets continue to grow and employers have shifted the conversation from whether pooled plans work to which structure is right for their business."  MORE >>

"A majority of firms – 55% of respondents – have integrated AI into at least one of their investment processes, while 27% report integrating AI as a pilot or proof-of-concept.... 69% of firms cited enhanced operational efficiency, and 55% cited faster or higher‑quality insights. Only 8% of firms reported measurable improvements in investment returns from implementing AI, and 8% reported reducing portfolio volatility."  MORE >>

"When a carrier can automate a simple auto or workers' comp claim in-house or buy that capability from an AI-native competitor at outcome-based pricing, every manual-labor full-time equivalent on a TPA's P&L becomes a margin drag, not a moat. The acquirer's playbook that built the industry's current champions will not build the next decade's winners.... The next decade's TPA champion will be the first mover that credibly prices its AI-enabled service below the carrier's in-house build-or-buy alternative, and backs that price with outcome-linked accountability."  MORE >>

"The economic realities of declining plan fees for advisors and providers have forced most to search for new revenue through wealth services like IRA rollovers, managed accounts and outside assets ... [T]he economics of selling and servicing a 401(k) plan to a small business owner are not compelling. Fees are relatively low, liability is high, and the work can be overwhelming for plan sponsors, advisors and providers. The package is the opportunity to engage with that small business owner whose main concern is not the value of a 401(k) plan to them or their employees."  MORE >>

"Professional service providers -- e.g., accountants, bankers, advisors -- are trusted partners who can help convince small firms to offer retirement plans. However, many may unintentionally reinforce misperceptions about plan costs and administrative burdens, making adoption seem out of reach. Analysis of new survey results shows that the providers with the most success: [1] are familiar with simple low-cost plan options; [2] describe plans as a tool to boost recruitment and retention; and [3] provide hands-on guidance to help firms set up a plan."  MORE >>

"That strategy of recasting claims for benefits under an ERISA plan as claims under state law ... runs headlong into one of ERISA's most potent defenses: the preemption defense. This defense is particularly important for companies that work in and near the employee benefits space and find themselves targeted with litigation arising from their work.... For example, where an employee accuses an insurer or technology platform of misrepresenting the availability of a particular benefit and seeks damages arising from the misrepresentation, that claim will generally be preempted."  MORE >>

"63% of millennials and 54% of Gen Xers are more likely to put part of their portfolio in an annuity or other guaranteed income solution. This pivot opens the door for advisors who have historically only used annuities as near-retirement products. They can now focus on positioning them as early-stage planning tools."  MORE >>

"[I]ndependent evaluation of a consulting relationship requires looking past process documentation to economic architecture. The most important questions are not about methodology. They are about money. How does your firm generate revenue beyond our retainer? Does any portion of your compensation, or that of your parent, flow, directly or indirectly, from recordkeepers or investment managers you recommend to us? ... Can you help us understand, in writing, every way your firm, not just your team, is compensated in connection with our retirement plan? How is individual consultant compensation structured, and does any component create incentives around provider relationships?"  MORE >>

"Recordkeepers can expect a greater amount of review activity from plan sponsors through 2026 ... 27% of plan sponsors will conduct a new recordkeeper search this year and 56% plan to run a due diligence review to benchmark recordkeeping fees and services. All plan segments, aside from large employers, said they expect to perform a review of their recordkeeping partners."  MORE >>

"For closely held business owners, the company often represents their largest asset -- and their primary retirement funding source. Yet retirement plans are frequently disconnected from exit planning conversations. For advisors, this gap represents both risk and opportunity."  MORE >>

"In 401(k) administration, a plan review is often most valuable when the employer’s business changes, even if the plan document itself has not. A plan that worked well last year can drift out of alignment when ownership, payroll, compensation, or workforce patterns shift. Periodic reviews help TPAs catch issues before they become failed testing, correction projects, or participant problems."  MORE >>

"There are few, if any, other industries in which costs have declined as precipitously as in defined contribution.... As a result of the hyperfocus on fees, record keeper service has deteriorated, and most wealth advisors and their broker/dealers stayed away from a high liability, low margin business.... But the upside of this race to the bottom has been the focus on the participant ... The DC platform has become the hub for providing advice on all aspects of a participant's financial well-being, including selecting the right benefits. "  MORE >>

"The retirement digital experience underwent notable changes in 2025, with an 87.3% increase in observed web experience updates from 2024....[F]irms rolled out new educational content and improved tools that help participants understand their retirement outlook.... [P]roviders reworked menus and modernized page layouts. Meanwhile, customer support features received the least attention -- something worth watching as AI-driven support tools continue to develop."  MORE >>

"Over the past decade, private equity has significantly accelerated consolidation across the retirement and benefits industries.... For plan sponsors, the key takeaway is not to avoid PE-backed firms -- but to ensure that evaluation processes remain objective, transparent, and well documented."  MORE >>

"As the stewards of retirement security for millions of people, pension leaders carry a profound responsibility. Yet many of these leaders are approaching retirement themselves, raising a critical question: who will lead next? Succession planning is the answer. It isn't only an HR exercise; it's a strategic imperative that ensures continuity, preserves institutional knowledge and safeguards the mission of pension plans."  MORE >>

"Wealth managers can face challenges when using AI to prepare client materials or conduct investment research ... But it's the more complex client-facing technology that poses the 'biggest fiduciary risk' ... FINRA's latest annual report ... included a new section on generative AI, stressing that while FINRA's rules are 'technology neutral,' they apply to AI just as they do to any other tool, including those that help with supervision, communications, recordkeeping and fair dealing."  MORE >>

"While there has no doubt been a convergence of wealth and retirement planning in recent years, these days there are increasing calls for retirement plan specialists to utilize their fiduciary expertise to help plan sponsors with another major benefits challenge -- health care."  MORE >>

"Many plan sponsor challenges may stem from unclear expectations rather than poor intent or lack of effort. When roles are not well defined, sponsors may assume something is being handled by a provider when it remains the sponsor's responsibility. Outsourcing administrative or investment functions does not remove fiduciary responsibility from the employer sponsoring the plan, even when multiple providers are involved. Sponsors who establish clarity upfront may be better positioned to manage risk and maintain compliance."  MORE >>

"Not only are many young Americans not even beginning to think about retirement yet, but studies also indicate millennials and Generation Z prefer to go online for financial advice rather than engage with a professional consultant. A possible solution is for advisors to leverage technology in tandem with their industry experience to reach more people."  MORE >>

"Contribution delays risk qualification failures, prohibited transaction issues, and fiduciary breach claims. Advisors can add value by helping ensure contributions are timely made, thus helping plan sponsors avoid costs, compliance issues, and participant complaints."  MORE >>

"[T]here are several advanced ways annuities can be designed to support clients with early retirement, including: ... An annuity ladder, which includes annuities with staggered maturity dates ... Those with significant assets and philanthropic goals may want to consider pairing a CRT with an annuity.... Annuity splits."  MORE >>

"Most advisors are using artificial intelligence (AI) to gain incremental efficiency by automating routine tasks, but the larger opportunity lies in redesigning workflows to enable proactive plan monitoring, true personalization at scale, and scalable expertise.... Differentiation is more likely to come from disciplined integration rather than speed, combining AI with human oversight, compliance guardrails, and validation protocols."  MORE >>

"[M]any advisors say they find it easier to turn plan participants into clients than acquiring clients through traditional channels.... 9% of advisors surveyed work with more than 20 plans, while 26% don't serve any defined contribution plans at all. Nonetheless, a majority are finding success by engaging participants through workplace retirement relationships[.]"  MORE >>