The US retirement system is under rising pressure as it faces increasing competition, decreasing revenue growth, escalating regulatory pressure, and an aging population. The structural challenges that contribute to these challenges are unlikely to ease in the near future. The increasing demand for low-cost services and higher transparency is becoming a survival threat for recordkeepers and plan advisors. However, reducing margins and revenue have forced the consolidation or exit of several recordkeeping firms. The increased competition has further brought down retirement plan administration and recordkeeping fees. Amidst the chaotic industry conditions, retirement plan service providers and recordkeepers need to find better ways to serve customers at scale while fulfilling their evolving needs. Here is a roadmap defining four paths to unearth the hidden opportunities in the US retirement industry.
