IN THIS ARTICLE

• Washington’s Focus on Retirement
• New Savings Programs
• Fiduciary Scrutiny
• Documentation and Governance
• Policy Changes and Growth Opportunities
• Looking Ahead
  

Retirement policy is entering one of its most active periods in recent memory, and I don't expect that momentum to slow anytime soon. Policymakers continue to focus on expanding retirement savings opportunities, improving participant outcomes and increasing access to workplace retirement plans. While these developments create complexity, they also signal something bigger: retirement savings remains a national priority, and advisors have an increasingly important opportunity to help clients navigate what's next.

During this year's Retirement Roundup session at LPL Focus, I joined colleagues Tom Gannon, Chief Advocacy Officer, and Greg Bailey, Associate General Counsel, to discuss what these developments mean for advisors and their clients. Here are five trends shaping the retirement landscape that every advisor should have on their radar.

Washington’s Focus on Retirement Is Intensifying

As Tom noted, "There is more focus on retirement issues on the part of the administration, Congress and the various agencies today than there has been in some time." From SECURE 2.0 implementation to new savings initiatives, policymakers continue to explore ways to expand access to retirement plans and encourage long-term savings.

I believe this trend will have the greatest impact over the next three to five years. As policymakers look for ways to make retirement plans easier and more affordable for small businesses to adopt, workplace retirement plan growth could accelerate, creating new opportunities for advisors serving business owners and plan sponsors.

New Savings Programs May Create Fresh Client Questions

Several recently announced initiatives are taking shape, including the rollout of Trump Accounts and the Saver's Match program, which is scheduled to take effect in 2027.

Both programs reflect a growing emphasis on helping Americans start saving earlier and build stronger financial freedom over time. Advisors should expect questions from both individual investors and plan sponsors about how these programs work and where they fit alongside existing retirement strategies.

In my view, these programs are another sign that retirement policy is moving toward broader participation and earlier engagement.

Fiduciary Scrutiny is Increasing

One of the most significant developments advisors should be watching is the Department of Labor's proposed Investment Selection Rule. While the proposal initially generated attention for its potential impact on alternative investments in defined contribution plans, it evolved into something much broader: a comprehensive framework for how retirement plan fiduciaries evaluate investments.

The proposal emphasizes that prudent decision making is less about investment outcomes and more about the process used to reach those decisions. As Greg explained, "We don't judge prudence in hindsight. We look at the process." Factors such as performance, fees, liquidity, valuation, complexity and benchmarking all play a role in demonstrating fiduciary diligence.

One of the biggest mistakes advisors can make is reacting to headlines before understanding the details. Regulatory proposals are often hundreds of pages long, and the final guidance doesn't always align with early expectations. The advisors who create the most value are those who separate headlines from substance.

Documentation and Governance Are Becoming Competitive Advantages

As regulatory expectations become more defined, documentation is becoming increasingly important. Whether evaluating investments, implementing plan changes or responding to new guidance, advisors should help clients demonstrate not only what decisions were made, but how they were made.

The proposed Investment Selection Rule reinforces this concept by establishing a clearer framework for evaluating investment options and documenting those evaluations. As Greg emphasized, the message for advisors is straightforward: "You've got to have a process, you've got to follow the process and you've got to be able to prove that you followed the process."

Policy Changes Continue to Create Growth Opportunities

The biggest opportunity, in my view, is the continued growth of workplace retirement plans, particularly among small businesses. As policymakers continue to make retirement plans easier and more affordable for employers to adopt, I expect more businesses to establish plans and expand benefits for their employees.

I believe the advisors best positioned to capitalize on that growth will be those who view retirement plans not as a separate business, but as a natural extension of their wealth management practice, creating opportunities to build deeper relationships with business owners and plan participants alike.

Advances in AI, automation and fintech may further support this evolution by helping advisors engage more participants and deliver personalized guidance at scale.

Looking Ahead

Retirement policy will continue to evolve, but I believe the greatest potential is still ahead of us. As access to workplace retirement plans expands, advisors have an opportunity to help more Americans save for retirement while building deeper relationships with business owners and plan participants.

The advisors who stand out will be those who understand the changing landscape, communicate it clearly and turn it into better outcomes for clients.