401(k) Real Talk Episode 210: September 30, 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
FIS retirement announced the launch of their long awaited cloud based record keeping system which includes Omni and Relius and are the clear leaders in the DC market with almost 70 m participants.
Incorporating AI and over 100 3rd party tech apps, the focus is on automated workflow, participant engagement and plan health metrics helping clients to turn information into action.
Old tech has inhibited DC plan innovation leading to the rise of fintechs using advanced technology to build systems to eliminate friction and reduce costs. If successful, the new FIS platform will not only streamline process and reduce costs but it can greatly improve outcomes and facilitate the convergence of wealth and retirement at work.
Next story:
New CFA Institute deep dive research shows that small allocations to alternative investments can improve returns without outsized risks. These investments could become more prevalent in DC plans when the DOL rule is finalized expected by the end of the year – Deloitte predicts $1 tr by 2030.
While private debt, real estate and infrastructure reduce volatility only PE and VC investments boost returns. Georgetown has reported that DC plans that include PE could see as much as a 15 bp increase in annual returns comparing them to DB plans that use them.
NEXT STORY
Vestwell reported 2 major additions to their board including the former Robinhood CFO Jason Warnick and Josh Warren CFO at Factset. Of note, Warnick helped with Robinhood’s IPO which may be in cards for Vestwell and brings wealth management expertise serving smaller investors.
Factset is a leading data and AI solutions provider both of which are key capabilities that all record keepers must master.
Fintechs that continue to reduce friction, streamline process and help serve less affluent participants in partnership with advisors through AI and data will see their valuations soar and attract legacy provider partners.
NEXT STORY
Driven by increased costs, fiduciary concern, new laws and regulations as well as growing litigation, more benefits brokers are turning away from commission to flat fee arrangements.
According to DOL filings, broker commissions increased from $4.35 bn in 2015 to $6.5 bn in 2024 with commissions automatically rising with premiums. But commission only brokers dropped from 63% in 2015 to just 53% in 2024. Lockton reports that reduction in fees are the top concern for the majority of employers.
As more costs are pushed off to participants, just like with the shift from DB to DC plans over the past 20 years ago, fiduciary liability increases which, combined with greater fee disclosure and litigation will lead to the kind of sweeping change experienced by 401k plans.
Can fiduciary RPAs lean into benefits? Unlikely as benefit brokers have strong relationships and RPAs do not have the required knowledge or experience with wealth management a more likely ancillary service. But RPAs can counsel clients and their benefit broker partners to better understand the trend. Because benefits, healthcare and saving for retirement as well as holistic financial planning should not be treated as silos.
FINALLY
Twenty years ago, some professionals in the defined contribution industry mostly at insurance companies started discussing the need for retirement income – one professional declared, “The accumulation phase of 401(k) plans is over!” We all know how that story has played out – every year we hear, “This time is different.” When challenged on why, no good explanation is offered.
Read my recent WealthManagement.com/RPA column about the numerous obstacles facing imbedded guaranteed and the simple if not easy ways to get wide-spread adoption.
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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DC investors face bad tail risk if AI stocks drop
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Over half of all Americans lack access to a retirement plan at work
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RIA M&A activity plummets in Q3
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Edelman names long-time DC industry vet as chief retirement officer and
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Why RPAs are adopting PEPS faster than wealth advisors
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.
