401(k) Real Talk Episode 214: October 28, 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
As retirement income adoption lags perhaps because of issues with annuities, Cap Group announced new target date series with simple distribution strategies recently covered in the WSJ.
The two approaches, both of which Cap Group claims will avoid people running out of money without having to annuitize, include:
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Fixed approach – 4-4.5% withdrawal which has an 84% probability of having 10% of assets at age 95
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Variable approach starting at 5-5.5% with minimal risk of depletion as withdrawals shrink during market downturns
As one of the largest TDF managers with 11 m participants and over $500bn, the announcement could help users with income planning for those who decide to keep their money in a TDF after retirement. It may require that plans retain the assets of retired participants popular with some larger plans but not smaller ones.
Next story:
Retirement plans are now tied with healthcare as employees a top ranked benefits according to a survey conducted with 200 plans with +$50m on behalf of Morgan Stanley. Their 2026 Retirement Plan Survey showed that 34% of workers named the DC plan their most valued benefit up from 15% in 2024.
Advisors and consultants were named by 69% of plan sponsors as one of their 3 most valuable resources – plans are using a combination of digital tools, education and 1/1 sessions with Morgan Stanley suggesting that the convergence of wealth, retirement and benefits at the workplace is growing.
NEXT STORY
How advisors select and fire their record keeper is changing and varies depending on the type of advisor according to an NMG survey. Josh Dietch, partner at NMG, noted that 80% of advisors still list price as an important criterion with 68% citing client service yet 28% said that they stopped doing business with a provider because of service compared to just 8% due to fees.
RPA specialists want help to scale their practices as plan fees continue to decline while hybrids want support to find new wealth clients and dabblers value simplicity.
The number of record keepers with scale that can service the $3-$50m advisor sold market is limited – that number is even smaller if advisors do not want to partner with providers who compete with them for participant services.
NEXT STORY
Are DC plan sponsors shifting their focus to improving outcomes rather than just providing access? That is the conclusion of the Gallagher 2026 US Financial Benchmarks Report with almost 4,000 employers. They no longer see financial wellness as a standalone service connecting it with engagement and improved business results.
Tools are being used by 81% of plans followed by 68% offering 1/1 access, 64% advice and 48% managed accounts.
If true, this is a refreshing trend that hopefully continues and is not derailed by a major market decline.
FINALLY
Though they seem to be led by providers and advisors, plan sponsors ultimately decide what is good for them and how that affects their retirement plans which in turn will drive change for those in the defined contribution industry willing to listen.
Read my recent WealthManagement.com/RPA column about what plan sponsors see as their greatest opportunities and challenges based on 700 TPSU programs with over 16,000 plan sponsors and where the industry needs to focus now and in the future.
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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BoA’s small plan service tops $100 billion
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Voluntary benefits litigation picking up & changing industry
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FINRA’ new marketing rule puts plan sponsors on notice
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Comparing managed accounts v. advisor managed accounts and
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Retirement savers using annuities sue LA Dodgers owner
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.
