The retirement plan landscape is currently experiencing significant changes with a focus on the small and mid-size market space. The convergence of wealth management and retirement is a popular topic, one which I expect will continue to get attention throughout 2025.
Financial advisors have always approached their business plans by looking to expand into related industries. The difference is that in the past they have had to become experts in what are very knowledge-intensive and labor-intensive fields, while today, technology is changing everything!
Why now?
Regulations are pushing small plans toward advisors, and creating a great need for advisor support. The small market is huge, and will dominate the space for years to come. This new market reality makes it vital that practices build efficiencies that make it easier for them to serve this crowd.
Additionally, many firms are making efforts to capture a greater share of assets from their wealthy clients. Since many of them are business owners, it creates an opportunity for advisors to expand their wealth management practices by pairing it with services for businesses, primarily retirement benefits.
Today, it’s easier than ever to take on small plan business. Digital recordkeepers like 401GO have automated and integrated every aspect of the 401(k) plan process, creating a much more hands-off experience, both for advisors and for business owners.
What’s next?
The most important decision the advisor can make is to pick the right partner. With so much M&A activity happening in the recordkeeping industry, there are fewer options to choose from. Closely examining industry platform partners has become a crucial step. Look for stable and modern technology, tech-based integrations with payroll, and quality of support.
I often recommend advisors review their existing clients to determine how much potential already exists with their book of business to create an additional stream of revenue with retirement plans. Expanding services doesn’t necessarily require intense prospecting, and it’s likely to be more effective when it’s beneficial to the core practice.
With the retirement space growing significantly and the aging advisor market, the country doesn’t have enough advisors to meet demand. Technology is increasingly important to help existing and incoming advisors become efficient and effective.
Who can help?
How can wealth advisors start leveraging wealth, insurance or benefits services to expand their plan practice? And who can help? 401GO was built to help make the retirement plan business easier and less expensive for all stakeholders, including business owners, employees, and their financial advisors. Whether you need a solo plan, start-ups, conversion plans, or even cash balance plans, you can get a streamlined experience by working with 401GO.
Convergence is a powerful trend in the financial services market and will provide a significant advantage to both experts and novice plan advisors alike—if you choose the right partners. If you’re interested in learning how we help all our advisor partners grow their plan business let us share how our cutting-edge recordkeeping technology, along with our award-winning service model, can help build stronger wealth practices.
