Retirement Plans Are Changing. Are You Ready to Seize the Opportunity?

While headlines often focus on shifting markets and evolving regulations, one corner of the retirement industry is quietly and rapidly expanding as an opportunity for advisors: workplace retirement plans. Once considered outside of the traditional advisor marketplace, a recent study by Cerulli Associates estimates that about 12,000 financial advisors now specialize in these plans, serving nearly $13 trillion in assets.

Cerulli Associates also finds more than 400,000 new 401(k) plans are expected to enter the market in the coming years, driven by state mandates, tax credits in SECURE 2.0, and the rise of group plans like Pooled Employer Plans (PEPs). This growth presents an incredible opportunity for financial advisors willing to evolve and expand their practices. But only if they understand how to capitalize on the trend.

Retirement Planning Isn’t Enough Anymore

Today’s workforce isn’t satisfied with the standard 401(k) for their retirement planning. They want a holistic financial experience from their employer that connects their workplace benefits with their personal financial goals. That’s why employers are demanding more from their retirement plan partners, looking to add financial wellness programs and personalized guidance to their benefits mix.

Here’s where you come in. Advisors who can expand beyond cookie-cutter retirement plans are becoming indispensable in business. And, as a result, are broadening their reach, strengthening client relationships, and growing their practices.

Ready to try it for yourself? Here are five tips to help you position yourself for success in this evolving space.

1. Check Your Books

The potential for expanding into retirement plan services could be as close as your current book of business. C-suite executives, small business owners, and doctors and lawyers may not realize you have the expertise to manage a workplace retirement plan, and possess the decision-making power to move their current retirement plan needs over to you. Reaching out to these clients is a great first step toward expanding your services.

2. Track Trends to Stay Ahead

Stay informed on legislation, compliance requirements, and industry trends by reading industry publications, and getting involved with professional organizations, such as The National Association of Plan Advisors (NAPA).

3. New Disciplines = New Opportunities

To effectively serve both individual clients and retirement plan participants, consider earning credentials that span both domains. Designations like the Certified Plan Fiduciary Advisor (CPFA®) or Retirement Income Certified Professional (RICP®) can enhance your credibility and equip you with the knowledge to deliver comprehensive advice across life stages.

4. Lead with Holistic Services

Employers are seeing the trends. They are engaged and eager to evolve with their workforce, but often don’t know where to start. Advisors who can deliver workshops, digital tools, or one-on-one coaching for employees are poised to differentiate themselves in a crowded space. These services not only support plan participants, but also create a pipe-line of future wealth management clients.

5. Find a Trusted Partner

Whether you’re seeking to effectively navigate the complexities of a converging financial landscape, expand your service offerings, or provide a more valuable and integrated experience for your clients, it’s important to find a partner who can help you reach your business goals, and guide you every step of the way.

Imagine the trends coming together – legislative changes, employee demands, new plans – all pointing to one conclusion: now is the best time to broaden your retirement offerings, especially with trillions in assets and hundreds of thousands of new plans on the horizon. Advisors who are embracing this shift are already unlocking new revenue streams and building stronger relationships with clients. The opportunity is there. How will you capitalize on it?

Michael Doshier, a member of the LPL Spokesperson Council, regularly shares timely insights on retirement trends, regulatory changes and industry shifts. Follow Michael on LinkedIn.