401(k) Real Talk Episode 212: October 14, 2026
Welcome to this week’s edition of 401(k) Real Talk, where Fred Barstein, contributing editor for Wealth Management’s RPA channel, reviews all of last week’s industry news and selects the five most important/interesting stories.
Worth Reading:
Read the full raw transcript below:
Greetings & a warm welcome to this week’s edition of 401k Real Talk. This is Fred Barstein contributing editor at WealthManagement’s RPA omnichannel and CEO at TRAU, TPSU & 401kTV – I review all of this week’s stories and select the most important and interesting ones providing open honest and candid discussion you will not get anyway else. So let’s get real!
FIRST STORY
Insightful Cerulli whitepaper commissioned by Morningstar about the issues wealth advisors face trying to build a bridge to wealth at work. The research shows just 10% of their wealth clients come from DC plans.
Barriers include:
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High touch engagement models
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Limited access to participant data
Cerulli recommends:
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Stronger advisors buy-in to DC plans which are complex, low margin and difficult to source
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Comprehensive ecosystem to help advisors prospect, identify and convert wealth clients
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Greater access to participant data
Next story:
Angry democrats on the House Education and Workplace Committee are demanding answers from EBSA director Dan Aronowitz about current staffing levels and their inability to properly protect workers.
They cite a flat budget against rising costs and staff reduction due to deferred resignations and early retirement resulting in 40% fewer investigators – in 2024 there was 1 investigator for every 13,900 plans which has risen to 1 for every 21,400 plans. The 2027 EBSA budget calls for an almost 6% decrease.
In addition, the agency has deprioritized enforcement against plan sponsors while limiting litigation which usually ramp up when regulators step back.
If democrats win the house, this recent demand is just a preview of more forceful inquiries and subpoenas. Many of the issues have been caused by the dismal failure and devasting results of Elon Musk’s DOGE initiative detailed in a recent book by Michael Lewis.
NEXT STORY
PEPs are growing at a rapid pace but have yet to deliver significant cost savings which is a main reason cited by AON to move from Voya as their record keeper to Vanguard whose funds will become more available. AON currently has the largest PEP with $7.7 bn, 160 employers and 103,000 participants offering its own CITs.
Along with cost savings, AON will extend participant focused resources from Vanguard including advice, education and wellness tools.
PEPs are growing rapidly with firms like Transamerica, Voya, Principal, Paychex and Standard leaning in using their distribution muscle. The focus may now turn to cost saving as the industry matures.
NEXT STORY
To gain widespread adoption, a new Cerulli report is recommending more participant advice and planning along with education for plan sponsors and advisors.
Pre-retirees want regular guaranteed payouts with consultants more likely to recommend the use of managed accounts over TDFs and out of plan annuities. There may be a need for multiple options in a plan.
Though in plan income is cheaper and better than out of plan annuities affording participants greater protection and lower costs, there is still a greater need for fee transparency according to Cerulli as well as more record keeper portability.
Beyond advice, participants want their employer and advisor to do it for them, just like with auto enrollment which will require more plan sponsor and advisor education
FINALLY
Recently, a young well-heeled private equity veteran called about his intent to raise funds to acquire TPAs. My first question was, “Why?” Not because there is anything wrong with TPAs, but roll-ups are hard and there are more than a handful of competitors.
Read my recent WealthManagement.com/RPA column about why TPAs are now sexy and why PE firms are chasing after them.
FINISH
So those were the most important stories from the past week. I listed a few others that are worth reading covering:
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Employers need to ask if their advisor is doing enough for employees
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High earners have stopped maxing out their 401ks
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Morningstar rolls out new AI investment research platform
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Creative planning hires new CMO with consumer finance brand experience and
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Another ERISA benefits lawsuit filed against a leading benefits broker
Please let me know if I missed anything or if you would like to comment. Otherwise I look forward to speaking to you next week on 401k Real Talk.
